4. A firm faces a perfectly elastic demand curve for its output at a price of $5. The firm has market power in the labor market and faces an upward sloping supply curve: = 10, where is the number of workers and is the hourly wage.

a. If each hour of labor produces 2 units of output, what wage and employment level should the firm set to maximize profits?

b. If a minimum wage of $8 is imposed, what will the firm's new wage and employment level be?