Each hour of labor produces five units of output. How many workers should the firm hire each hour tomaximize profits? What wage will the firm pay? What are the firms hourly profits?
4-8. Polly’s Pet Store has a local monopoly on the grooming of dogs. The daily inverse demand curve for pet grooming is:P = 20 – 0.1where Pis the price of each grooming and Qis the number of groomings given each day. This implies that Polly’s marginal revenue is:MR = 20 – 0.2QEach worker Polly hires can groom 20 dogs each day. What is Polly’s labor demand curve as a function of w, the daily wage that Polly takes as given?Q.