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Economics

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 = 6 L – 0.5 L2 where Q is the number of car washes per hour, and L is the number of workers. a. Write equations for APL and MPL and graph them on the same set of axes. b. Suppose the market price of a car wash is $5. How many people should the owner hire if he pays each worker $6/hour? c. Suppose he considers hiring students on a part-time basis for $4/hour. Should he hire more workers at this lower rate? Explain.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9440202

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