Module 7 Self-Check BADM 7200 Problems Chapter 6 Test with
Accurate Solutions
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
• Q = # of car washes per hour
• L = # of workers
1. Derive the average product & marginal product equations.
Page 1 of 12
, 2. 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?
Page 2 of 12
Accurate Solutions
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
• Q = # of car washes per hour
• L = # of workers
1. Derive the average product & marginal product equations.
Page 1 of 12
, 2. 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?
Page 2 of 12
