Mangy Mutt Modifiers (3M)grooms dogs.3M has a fixed capital stock,and uses only one variable input,labour.Additionally,3M sells its output and buys its labour under competitive market conditions.Using the information provided,answer the questions that follow.

(a)If the competitive wage rate is $15.00 per unit of labour,how many units of labour will 3M hire?
(b)Calculate 3M's gross profit at that combination of wages and labour.Assume that there are zero capital costs,so gross profits equal total revenue less labour costs.Show your calculation.

Question

Mangy Mutt Modifiers (3M)grooms dogs.3M has a fixed capital stock,and uses only one variable input,labour.Additionally,3M sells its output and buys its labour under competitive market conditions.Using the information provided,answer the questions that follow.
 
 (a)If the competitive wage rate is $15.00 per unit of labour,how many units of labour will 3M hire?
(b)Calculate 3M's gross profit at that combination of wages and labour.Assume that there are zero capital costs,so gross profits equal total revenue less labour costs.Show your calculation.

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The Answer of Mangy Mutt Modifiers (3M)grooms dogs.3M has a fixed capital stock,and uses only one variable input,labour.Additionally,3M sells its output and buys its labour under competitive market conditions.Using the information provided,answer the questions that follow.
 
 (a)If the competitive wage rate is $15.00 per unit of labour,how many units of labour will 3M hire?
(b)Calculate 3M's gross profit at that combination of wages and labour.Assume that there are zero capital costs,so gross profits equal total revenue less labour costs.Show your calculation.

Mangy Mutt Modifiers (3M)grooms Dogs