(Solved): a) First, consider a competitive labor market, in which the firm has to hire labor at w=13. How man ...

a) First, consider a competitive labor market, in which the firm has to hire labor at $$w=13$$. How many units of labor will the firm hire and how much profit will it make? b) Next, a $$\$20$$ minimum wage is imposed. How much labor will the firm hire and how much profit will it make? c) How does a firm in a competitive labor market respond to a minimum wage policy? Why? Now, suppose that a firm with the same revenue function has market power in the labor market and faces the following labor supply: d) How many units of labor would the firm hire? What wage would it offer? What profit will it make? \begin{tabular}{|l|l|l|} \hline $$\mathrm{L}=$$ & $$\mathrm{w}=$$ & Profit = \\ \hline \end{tabular} e) Find the labor supply in this market after a $$\$20$$ minimum wage is imposed. f) How many units of labor would the company hire? What wage would it offer? What profit will it make? \begin{tabular}{|l|l|l|} \hline$$L=$$ & $$w=$$ & Profit $$=$$ \\ \hline \end{tabular} g) Why would a firm with market power in the labor market respond to a minimum wage policy differently than a firm operating in a competitive labor market?