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1. (4 points) Consider two firms, Firm A and B. A job has two attributes: wages (W) and fringe benefits {F). Assume that Firm A
1. (4 points) Consider two firms, Firm A and B. A job has two attributes: wages (W) and fringe benefits {F). Assume that Firm A earns a predetermimed sales revenue of $500 when it employs one worker and it costs the firm S50 per unit of fringe benefits. Therefore, the finm's total cost can be expressed as TC =W =+ 50F. Firm B's predetermined sales revenue is $300 when employing one worker and the firm"s cost of providing one unit of finge benefits is $20. Firm B's todal cost can be expressed as TC=W-+20F. For simplicity, assume that each firm hires only one worker, a) (! point) Deaw the isoprofit schedule for both Firm A and B when both firms earn zero profits. Make sure o draw the two isoprofit schedules on the same graph (place W on the vertical axis and F on the horizontal axis). Graphically illustrate the employer's offer curve
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