Posted by **Soanz** on Sunday, March 13, 2011 at 7:16pm.

George, the owner of a car wash is trying to decide on the number of people to employ based

on the following short–run production function:

Q = 6L – 0.5L2

Where Q = number of car washes per hour and L = number of workers.

a) Generate a schedule showing total product, average product and marginal product. (5 marks)

b) The price of a basic car wash is $50. How many workers should he hire if each worker is

paid $60/hour? (3 marks)

c) He is considering hiring students on a part–time basis for $40/hour, do you think he

should do so? Explain. (2 marks)

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