Polly’s Pet Store has a local monopoly on the grooming of dogs. The daily inverse demand curve for pet grooming is:
P = 20 – 0.1Q
where P is the price of each grooming and Q is the number of groomings given each day. This implies that Polly’s marginal revenue is:
MR = 20 – 0.2Q.
Each worker Polly hires can groom 20 dogs each day. What is Polly’s labor demand curve as a function of w, the daily wage that Polly takes as given?
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