Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Answer to "Profit Maximization" problem

The owner of the car wash believes that the relationship between the number of cars washed and labor input is Q = -0.8 + 4.5L - 0.3L2, where Q is the number of cars washed per hour, and L is the number of people employed per hour. The firm receives $5 for each car washed, and the hourly wage rate for each person employed is $4.5. Assume that other costs are negligible.

A. How many people should be employed to maximize profit?
B. What will be the firms hourly profit?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M927113

Have any Question? 


Related Questions in Business Economics

Anderson and kay are two individuals who one day discover a

Anderson and Kay are two individuals who one day discover a stream that flows wine cooler instead of water. Anderson and Kay decide to bottle the wine cooler and sell it. The marginal cost of bottling wine cooler and the ...

The purpose of this assessment is to help you recap the

The purpose of this assessment is to help you recap the concepts covered in this course and discuss the challenges you have faced in previous assessments. Review the concepts covered in the previous modules and discuss t ...

For each one of the costs below explain whether the

For each one of the costs below, explain whether the resource cost is explicit or implicit, and give the annual opportunity cost for each one. Assume the owner of the business can invest money and earn 10 percent annuall ...

Mortgages increase the risk faced by homeowners a explain

Mortgages increase the risk faced by homeowners. a) Explain how. The mortgage is leverage for the homeowner, and leverage increase risk. b. What happens to the homeowner’s risk as the down payment on the house rises from ...

Explain the importance of the backup table statement and

Explain the importance of the BACKUP TABLE statement and the RESTORE TABLE statement. When are they used?

A major problem for negotiations by members of the world

A major problem for negotiations by members of the World Trade Organization to expand free trade has been the issue of agricultural subsidies. U.S. government agricultural subsidies to cotton farmers have allowed them to ...

Advanced analysis assume the following values for the

ADVANCED ANALYSIS Assume the following values for the figures below: Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The market equilibrium price is $45 per bag. In Figure (a), the price at point a is $85 per bag. The price at ...

Assessment reportyour company an australian pharmaceutical

Assessment: Report Your company (an Australian pharmaceutical company) is considering South Africa and China to expand its business and enter the global marketplace for the first time. As an International Operations Mana ...

Jones manufacturing company makes two products the

Jones Manufacturing Company makes two products. The company’s budget includes $486,680 of overhead. In the past, the company allocated overhead based on estimated total direct labor hours of 21,160. Jones recently implem ...

Write a program to scan 2 integer numbers from user then

Write a program to scan 2 integer numbers from user, then check for below conditions: a). If both the numbers are equal, print a message "Both numbers are equal". b). If first number is greater than second number, print ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate