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4) Using isocost and isoquant curves, show a rm's optimal quantities of high skilled labor and low skilled labor. Suppose the government required firms to

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4) Using isocost and isoquant curves, show a rm's optimal quantities of high skilled labor and low skilled labor. Suppose the government required firms to provide all employees with healthcare. Further suppose the following was true before the law passed. All high skilled labor already had healthcare provided by rms, and no low skilled laborers had health insurance. How would the law impact the isocost curve? If the rm wants to keep output the same, show the new low skill / high skill labor combination that the rm will choose. Show all this graphically and explain. Also, explain whether the rm's costs increase or decrease. Table 2: Firm B Produce Do not Produce Firm A Produce 10,10 16,13 Don't Produce 13,16 7,7 Payoffs: A, B

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