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 5 6L 2 0.5L2 where Q 5 Number of car washes per hour L 5 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? Explain.