5. Either skilled or unskilled workers can be used to produce a small toy. The marginal product of skilled workers, measured in terms of toys produced per day, equals 200 − N , where N is the number of skilled workers employed. Similarly, the marginal product of unskilled workers is 100 − N , where N is the number of unskilled workers employed. The toys sell for $3 each. LO 5.3 LO 5.4 HARD s s u u a)Assume that there are 100 skilled workers and 50 unskilled workers available (and the labour supply curves for each group are vertical). In dollars, what will be the equilibrium wage for each type of worker? (Hint: What are the marginal products and the values of marginal product for each type of worker when all workers are employed?) b)Electronic equipment is introduced that increases the marginal product of skilled workers (who can use the equipment) to 300 − N . The marginal products of unskilled workers are unaffected. What are the equilibrium wages for the two groups? s c)Suppose that unskilled workers find it worthwhile to acquire skills when the wage differential between skilled and unskilled workers is $300 per day or greater. Following the introduction of the electronic equipment, how many unskilled workers will become skilled? (Hint: How many workers would have to shift from the unskilled to the skilled category to make the equilibrium difference in wages precisely equal to $300 per day?) What are the equilibrium wages for skilled and unskilled workers after some unskilled workers acquire training?