Answer
a) Perfectly competitive market
b) Perfectly competitive market
c) Please see the table.
d) 4 robots
Work Step by Step
a) Since the firm is selling all of its output at the market price, the firm is in a perfectly competitive market.
b) Since the firm is buying its robots at the market price, the market is a perfectly competitive market.
c) The table shows the marginal product and the value of the marginal product.
d) The firm should rent a number of robots such that the value of the marginal product is the same as the rent of the robot. This happens when four robots are rented.
