8. Answer the attached question below. Parts A, B, And C

Save Answer An economy produces cloth and food using labor, a mobile factor. Each industry also uses a specific factor. The economy's labor supply equals 10. The table below shows the marginal product of labor in each industry given labor employment. LC (labor employed LF (labor employed MPLC. in cloth industry) MPLF in food industry) 20 1 10 2 18 2 9 3 16 3 8 4 14 4 7 12 5 6 10 6 5 8 7 IA 6 8 3 4 9 IN 10 2 10 1 Suppose the prices of cloth is Pc = 1, and the prices of food is PF = 1. a. If wage is w = 4, what will be the quantity of labor demanded by each industry? Is w = 4 an equilibrium wage? Explain why. b. If wage is w = 10, what will be the quantity of labor demanded by each industry? Is w = 10 an equilibrium wage? Explain why. c. What is the equilibrium wage? Why? TTT Arial V 3 (12pt) E ABS