1. Production and Cost The following represents the output per worker for kite production. Assume fixed plant size (constant capital), with a fixed cost of $20. A kite sells for $10, unskilled workers earn $S/hour and skilled workers earn $15/hour. Assume for simplicity that workers work one hour UNSKILLED WORKERS Total Product (per hour) Worker 10 12 12 SKILLED WORKERS Worker Total Product (per hour) 14 19 4. 25 a) Assuming there are only unskilled workers, how many workers will the firm hire to maximize profit? The firm would hire 5 unskilled workers. Why? 5 workers produce the highest profit. What are the firm's Total Cost, Total Revenue, and Profit? Total Cost#TVC + TFC-S20 t(5)$5= $45 Total Revenue-P x Q-S10 x 12-120. Profit= $75. b) Assume there are both unskilled and skilled workers, working in separate factories (each with the same fixed cost). How many workers of each kind will the firm hire to. maximize profit? Why? What are the firm's Total Cost, Total Revenue, and Profit? c) Assume the government imposes a minimum wage of S11/hr. How many unskilled workers and skilled workers, will the firm hire, in order to maximize profit? What are the firm's Total Cost, Total Revenue, and Profit