# 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: Number of Robots Total Product 0 0 gallons 1 50 2 85 3 115 4 140 5 150 6 155 a. In what kind of market structure does the firm sell its output? How can you tell? b. In what kind of market structure does the firm rent robots? How can you tell? c. Calculate the marginal product and the value of the marginal product for each additional robot. d. How many robots should the firm rent? Explain.

### Principles of Economics (MindTap C...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305585126

Chapter
Section

### Principles of Economics (MindTap C...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305585126
Chapter 18, Problem 4PA
Textbook Problem
483 views

## 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: Number of Robots Total Product 0 0 gallons 1 50 2 85 3 115 4 140 5 150 6 155 a. In what kind of market structure does the firm sell its output? How can you tell?b. In what kind of market structure does the firm rent robots? How can you tell?c. Calculate the marginal product and the value of the marginal product for each additional robot.d. How many robots should the firm rent? Explain.

Subpart (a):

To determine

To calculate: Price in the perfect competitive market.

### Explanation of Solution

The firm sells their output in a perfectly competitive market. In a perfectly competitive market, there are large...

Subpart (b):

To determine

To calculate: Price in the perfect competitive market.

Subpart (c):

To determine

To calculate: The marginal product and the value of marginal product.

Subpart (d):

To determine

To calculate: The marginal product and the value of marginal product.

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Find more solutions based on key concepts

Principles of Macroeconomics (MindTap Course List)

What are the three steps in decision making?

Accounting Information Systems

What are the disadvantages of a partnership?

Foundations of Business (MindTap Course List)

Explain cause-related marketing

MKTG 12:STUDENT ED.-TEXT

CAPM, PORTFOLIO RISK. AND RETURN Consider the following information for Stocks X, Y, and Z. The returns on the ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)