a. Assume that there are no hiring or training costs .If the firm expects the price of output to be $10 , what is the optimal level of employment , L0 ? If the firm hires these workers ,but then finds out that the price of output is $5, what will the firm do? b. Assume now that there are hiring and training costs of $20 per worker . If the firm expects the price of output to be $10, what is the optimal level of employment ? How does this compare to your answer in part (a)? If the firm hires these workers but then finds out that the price of output is $5, what will the firm do? What if the price is $2? Explain . Explain (qualitatively )how your answer to part (b) would change if the hiring and training costs were higher or lower .How can these results be used to predict patterns of layoffs across occupations and industries during economic downturns ? a. Consider a firm that sells its output in a perfectly competitive product market , and hires labour in a perfectly competitive labour market .The value of the marginal product of labour (in dollars ) is given by , VMPL : 30 - 2LAssuming that the firm is a profit maximizer and can hire labour at $W per unit , derive its labour demand function b. Given that there are 10 identical firms (like the firm described in part (a)) in the industry, show that the market labour demand is given by, LD : 150 - SWThe supply function of labour to this market is given by, LS = 10WSolve for the equilibrium wage and level of employment in this market