-Doug's Dog Grooming is a perfectly competitive firm charging $5 per dog grooming. Doug's Dog Grooming has the total and marginal product of labour schedules in the above table and can hire workers from a perfectly competitive labour market for $15 per hour. The profit- maximising level of employment for Doug's Dog Grooming is

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In a perfectly competitive market, a firm maximizes profit by hiring workers up to the point where the marginal product of labor (MPL) times the price of the service (P) equals the wage rate (W), i.e., $P \times MPL = W$. Without the specific numbers from the table, we apply the principle that the firm will hire workers as long as the additional revenue generated by hiring an additional worker (the marginal revenue product, MRP) is at least equal to the cost of hiring the worker (the wage, $15). Since we can't calculate the exact MPL from the provided information, we rely on the principle that the profit-maximizing level of employment is where $P \times MPL = W$, and given the choices, the correct answer is inferred based on this economic principle.

-Doug's Dog Grooming Is a Perfectly Competitive Firm Charging $5