10 . Label axes, curves, and directions 9 of increase Suppose initially L = 4 and K = 4 and the union raises wages from $1 to $2.50 . Draw new curves to show - the precise effect on costs -NOAUONO - a representative effect on output . Based on your representation, indicate the new quantities of labour and capital the firm will use - in your case is total cost of inputs O 1 2 3 4 5 6 7 8 9 10 higher or lower than initially? Why will the effect on output be similar for both a product monopolist and a competitive firm?. Label axes 2.25 2.00 . Sketch a possible labour demand curve for the firm above 1.75 - include the precise points 1.50 corresponding to the initial 1.25 and final scenarios represented 1.00 . In this model, does a union wage raise 0.75 always cause the firm to reduce 0.50 employment and use more capital? 0.25 O O 1 2 3 4 5 6 7 8 9 10 Why is the marginal revenue product of labour not equal to this curve