Smiling Cow Dairy can sell all the milk it wants for $4 a gallon, and it can ren

Question

Smiling Cow Dairy can sell all the milk it wants for $4 a gallon, and it can rent all the robots it wants to milk the cows at a capital rental price of $100 a day. It faces the following production schedule: In what kind of market structure does the firm sell its output? Monopolistically competitive Monopolistic Oligopolistic Perfectly competitive In what kind of market structure does the firm rent robots? Monopolistic Monopolistically competitive Oligopolistic In what kind of market structure does the firm rent robots? Monopolistic Monopolistically competitive Oligopolistic Perfectly competitive Complete the following table by computing the marginal product and the value of the marginal product for each additional robot.

Explanation / Answer

Price is fixed at $ 4 , it seems like a perfectly competitive because the output is continously increasing .

Firms would rent at $ 100 in monopolistic market to earn more profits

Mp = 0,50, 35,30,25,10,5
value of Mp = 0 , 50,70 , 100,50 , 30

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