2. The John Lamb Company, a protmaximizing rm producing widgets, is in a perfectly competitive widget market. Assume John Lamb employs a xed number of employees and rents a machine for a variable number of hours from a perfectly competitive market. (a) Using correctly labeled side-by-side graphs of the factor market for machines and the John Lamb Company, show each of the following. (i) The equilibrium rental price of machines in the factor market, labeled as PR (ii) John Lamb's equilibrium rental quantity of machines, labeled as QL (b) Assume that the popularity of widgets declines, decreasing the demand for widgets. What will happen to each of the following? (i) Marginal product curve for machine-hours (ii) Marginal revenue product curve for machine-hours. Explain. (c) John Lamb is employing the cost-minimizing combination of inputs. The marginal product of labor is 28 widgets per worker hour and the wage rate is $14 per hour. The marginal product of the machine is 60 widgets per machine-hour. What is the hourly rental price of a machine