The owner of ryans car wash believes that the relationship, Ask an Expert

Economics

The owner of Ryan's Car Wash believes that the relationship between the number of cars washed and labor is Q = - 0.6 + 4L - 0.8 L2, where Q is the number of cars washed per hour, and L is the number of people employed per hour. The firm receives $4.50 for each car washed, and the hourly wage rate for each person is $3.60. The cost of other inputs like water is trivial, and hence they are ignored.

1. How many people should be employed to maximize profit?

2. What will be the firm’s hourly profit?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M91587185

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