smiling cow dairy can sell all the milk it wants for $4 agallon, and it can rent
ID: 1234050 • Letter: S
Question
smiling cow dairy can sell all the milk it wants for $4 agallon, and it can rent all the robots it wants to milk the cows ata capital rental price of $100 a day . it faces the followingproduction scedule : Number ofRobots Total Product 0 0 gallons 1 50 2 85 3 115 4 140 5 150 6 155in what kind of market structure does the firm rent robots? how canyou tell ? smiling cow dairy can sell all the milk it wants for $4 agallon, and it can rent all the robots it wants to milk the cows ata capital rental price of $100 a day . it faces the followingproduction scedule : Number ofRobots Total Product 0 0 gallons 1 50 2 85 3 115 4 140 5 150 6 155
in what kind of market structure does the firm rent robots? how canyou tell ?
Explanation / Answer
It is a perfectly competitive market. A perfectly competitive market is the only kind of market where abuyer or seller has no influence on the price. Since the firm canrent as much robots as it wants at a given price, consequently itmust be a perfectly competitive market.
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