Below Are the Input Costs for a Vet Clinic $$

question 25

Multiple Choice

Below are the input costs for a Vet Clinic.
Suppose that labor (hrs) is used to produce vet services (appts) at the Vet Clinic.
The wage rate, or price of labor is PX=$20/hr, and the price of an appointment is P<sub>Y<\sub>=$10/appt.
$$ $$ $\quad$

$\begin{array}{lccccc}\underline{\mathrm{X}} & \underline{\mathrm{Y}} & \underline{\text { TRP }} & \underline{\text {TFC}} & \underline{\pi} &\underline{\text {MRP}} &\underline{\text { MFC }} \\\text {UNITS: }& &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } \\0& \underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } \\1 & 5 &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } \\2 & 15 &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } \\3 & 30 &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } \\4 & 40 &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } \\5 & 45 &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } \\6 & 47 &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } \\7 & 45 &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } &\underline {\quad\quad } \\\end{array}$
-What is the profit-maximizing level of labor?</sub>

• A) 3
• B) 4
• C) 6
• D) 7

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Definitions:

Oligopoly

A market setup where a few companies dominate by holding a significant market share.

Monopoly Level

A state or degree in which a single company or entity has exclusive control over a particular market or industry.

Product Differentiation

A marketing strategy that involves distinguishing a product or service from others, to make it more attractive to a particular target market.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales.