Estimation of Production - Exercise 6

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Q = 6L - 0.

5L
No. of workers No. of Car washes
A
L
TP
0
0
1
5.5
2
10
3
13.5
4
16
5
17.5
6
18
7
17.5
8
16
9
13.5

MP
0
5.5
4.5
3.5
2.5
1.5
0.5
-0.5
-1.5
-2.5

Price per car washes ($ per hour) = 5


No. of worker to be hired =
5

C Part-time student $ / hour =

Pay rate for one worker $6/ hour


AP TRP MRP TLC MLC TRP-TLC MRP-MLC
0
0
0
0
0
0
0
5.5 27.5 27.5
6
6
21.5
21.5
5
50 22.5 12
6
38
16.5
4.5 67.5 17.5 18
6
49.5
11.5
4
80 12.5 24
6
56
6.5
3.5 87.5
7.5 30
6
57.5
1.5
3
90
2.5 36
6
54
-3.5
2.5 87.5 -2.5 42
6
45.5
-8.5
2
80 -7.5 48
6
32
-13.5
1.5 67.5 -12.5 54
6
13.5
-18.5

PART-TIME STUDENT HIRED $4 / HOUR


TRP MRP TLC MLC TRP-TLC MRP-MLC
0
0
0
0
0
0
27.5 27.5
4 22
23.5
5.5
50 22.5
8 18
42
4.5
67.5 17.5 12 14
55.5
3.5
80 12.5 16 10
64
2.5
87.5
7.5 20
6
67.5
1.5
90
2.5 24
2
66
0.5
87.5 -2.5 28
-2
59.5
-0.5
80 -7.5 32
-6
48
-1.5
67.5 -12.5 36 -10
31.5
-2.5

ate one worker $ / h6

I dont think he should hire more worker at this lower rate as it will increase
the number of workers even more.
20
15
TP

10

MP
5

AP

0
0
-5

10

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