The number of oil changes per hour at Quick Lube is described by the following short-term production function: Q=10L−0.5L2   If oil changes (Q) sell for $20 each and labor (L) costs $40 per hour (wage), what is the optimal number of units of labor to hire per hour? How many oil changes will be completed?

Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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The number of oil changes per hour at Quick Lube is described by the following short-term production function:

Q=10L−0.5L2  

If oil changes (Q) sell for $20 each and labor (L) costs $40 per hour (wage), what is the optimal number of units of labor to hire per hour? How many oil changes will be completed?  

 

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