Mangy Muddy Mutt Modifiers (M\') grooms dogs. M has a fixed capital stock, and u
ID: 1127709 • Letter: M
Question
Mangy Muddy Mutt Modifiers (M') grooms dogs. M has a fixed capital stock, and uses only one variable input, labor. Additionally, Mt sells its output and buys its labor under competitive market conditions. The price M receives for grooming services is $1.50 per dog. TOTAL DOGS GROOMED 0 30 86 150 210 260 300 328 348 364 376 UNITS OF LABOR 0 MARGINAL PHYSICAL PRODUCT OF LABOR MARGINAL REVENUE PRODUCT OF LABOR 30 56 64 60 50 40 28 20 16 12 45 84 96 90 75 60 42 30 24 18 .2 4 10 (a) Complete the table above. (b) If the competitive wage rate is $30.00 per unit of labor, how many units of labor will 3M hire? Please be sure to explain how you derived your answerExplanation / Answer
Units of labor
No of hotdogs
Price(per hotdog)
Total Revenue
Marginal product of labor
Marginal revenue of labor
Cost of labor ($30 per labor)
Marginal cost of labor
0
0
1.5
0
1
30
1.5
45
30
45
30
30
2
86
1.5
129
56
84
60
30
3
150
1.5
225
64
96
90
30
4
210
1.5
315
60
90
120
30
5
260
1.5
390
50
75
150
30
6
300
1.5
450
40
60
180
30
7
328
1.5
492
28
42
210
30
8
348
1.5
522
20
30
240
30
9
364
1.5
546
16
24
270
30
10
376
1.5
564
12
18
300
30
If the wage rate is $30 per unit, 3M will hire 8 units of labor as at that units of labor Marginal Cost of labor=Marginal Revenue of labor.
Units of labor
No of hotdogs
Price(per hotdog)
Total Revenue
Marginal product of labor
Marginal revenue of labor
Cost of labor ($30 per labor)
Marginal cost of labor
0
0
1.5
0
1
30
1.5
45
30
45
30
30
2
86
1.5
129
56
84
60
30
3
150
1.5
225
64
96
90
30
4
210
1.5
315
60
90
120
30
5
260
1.5
390
50
75
150
30
6
300
1.5
450
40
60
180
30
7
328
1.5
492
28
42
210
30
8
348
1.5
522
20
30
240
30
9
364
1.5
546
16
24
270
30
10
376
1.5
564
12
18
300
30
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