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
L = Number of workers
a. Generate a schedule showing total product, average product, and marginal product. Plot this schedule on a graph.
b. Suppose the price of a basic car wash (no undercoating, no wax treatment, etc.) in his area of business is $5. How many people should he hire if he pays each worker $6/hour?
c. Suppose he considers hiring students on a part-time basis for $4/hour. Do you think he should hire more workers at this lower rate? describe.