1. 2. 3. 4. a. Derive the short-run labour demand curve of an individual competitive firm. Be sure to state all of your assumptions clearly. b. Illustrate this demand curve in a carefully labeled diagram. c. This labour demand curve slope downwards because the firm faces a downward- sloping demand curve for its product. True, false or uncertain. Explain with reference to your derivation and assumptions in part a. (No additional diagram required) a. Derive the short-run labour demand curve of an individual competitive firm. Be sure to state all of your assumptions clearly. b. Illustrate this demand curve in a carefully labeled diagram. c. An increase in the product price will cause this firm to demand more labour in the short-run because the scale effect is bigger than the substitution effect. True, false or uncertain. Explain with reference to your derivation and assumptions in part a. d. Illustrate the effect of this price increase on the labour demand curve in your diagram in b. a. Derive the short-run labour demand curve of an individual competitive firm. Be sure to state all of your assumptions clearly. b. Illustrate this demand curve in a carefully labeled diagram. c. What does the elasticity of this demand curve depend on? Explain with reference to your derivation and assumptions in part a (no additional diagram required). a. Derive the short-run labour demand curve of an individual competitive firm. Be sure to state all of your assumptions clearly. b. Illustrate this demand curve in a carefully labeled diagram. c. Suppose that a technological innovation allows firms to produce more output with the same amount of capital and labour. How does this affect the firm's short-run labour demand curve? Explain with reference to your derivation and assumptions in part a. d. Illustrate the effect of this technological innovation on the labour demand curve using your diagram in b.