Asked by Keisha
Economics Production Schedule
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, with the corresponding marginal product of labor equation, MPL = 6 - L.
a. Generate a schedule showing total product, average product of labor, and marginal product of labor using a range of labor inputs 0 to 6.
b. Plot the production function and the APL and MPL on two graphs.
c. Suppose the price of a basic car wash is $5. How many people should be hired if each worker is paid $6 per hour?
d. If the owner can hire students on a part-time basis for $4 per hour, should he hire assuming he/she keeps the other workers and continues to pay them $5 per hour?
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, with the corresponding marginal product of labor equation, MPL = 6 - L.
a. Generate a schedule showing total product, average product of labor, and marginal product of labor using a range of labor inputs 0 to 6.
b. Plot the production function and the APL and MPL on two graphs.
c. Suppose the price of a basic car wash is $5. How many people should be hired if each worker is paid $6 per hour?
d. If the owner can hire students on a part-time basis for $4 per hour, should he hire assuming he/she keeps the other workers and continues to pay them $5 per hour?
Answers
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.