3. Suppose a rm has a market power in the labor market, but sells its output in a perfectly competitive market. Also suppose that its capital stock is xed in the short run, and the law of diminishing marginal returns applies. Can you draw the rm's demand for labor curve? If yes, draw it. If no, explain why you cannot do it. Part H. Longer questions. 1. A producer of widgets pays $5 for each day of labor and $15 for each day of capital employed. The table below describes the marginal products of each at various levels of employment. If you must produce Q = 920 widgets, nd the least-cost combination of labor and capital. # of L MPL # of K MPK employed employed