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1. Consider a firm whose MRP L =60-0.25L. If the market wage is 20, how much labor does the firm use? (Answer format is number

1. Consider a firm whose MRPL=60-0.25L. If the market wage is 20, how much labor does the firm use? (Answer format is number only, ie. 35, not L=35). (Answer is not 35).

2. The same firm as in Q9 is now offered a subsidy of $5 per worker by the government to increase employment. The market wage remains w=20. How much labor does the firm now hire?

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