1. 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 washers per hour

L = Number of workers

a. Generate a schedule showing total product, average product, and marginal prod-uct, Plot this schedule on a graph.

b. Suppose the price of basic car wash (no undercoating, no waxing 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 base for $4/hour. Do you think he should hire more workers at this lower rate? Explain.