Polly’s Pet Store has a local monopoly on the grooming of dogs. The daily inverse demand curve for pet grooming isP = 20 - 0.1Qwhere P is the price of each grooming and Q is the number of groomings given each day. This implies that Polly’s marginal revenue isMR = 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?

Polly’s Pet Store has a local monopoly on the grooming of dogs. The daily inverse demand curve for pet grooming isP = 20 - 0.1Qwhere P is the price of each grooming and Q is the number of groomings given each day. This implies that Polly’s marginal revenue isMR = 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?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.5P

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