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What do you expect to be the daily wage of the worker

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A business produces a good that is sold into a perfectly competitive market using the following production function: Q = K^1/3 L^2/3 , where K,L are units of inputs per day and Q is output per day. Suppose that the cost of capital is $5 per unit per day and the firm operates such that each unit of labor is combined with 6 units of capital. What do you expect to be the daily wage of the worker that the business employs? If the government decides to raise the minimum wage to $80 per day, will that change the price of the good and if so, to what?

Reference no: EM132500244

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