1.In Figure 1, what is the optimal employment level of the firm? What is the wage rate?
2. What can you say about the type of labor market and product market structures in Figure 1?
3. In Figure 2, what is the optimal employment level of the firm? What is the wage rate?
4. What can you say about the type of labor market and product market structures in Figure 2?
5. Is an efficient allocation of labor achieved in any of the situations portrayed in Figures 1 and 2? Why?
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