1. A city can use several different combinations of labor and computers to run its departments. People can fill out information on a paper form or on a computer. Below are three estimates of the mix of labor and computers needed to run a specific department. Computers and software cost $2000 each and must be replaced once a year.In a table below three choices of combinations of labor and computers are listed. Use this set of information to answer the following: (4 points)
2. In a non-unionized labor market, the wage for the workers at this office will be $24,000 per year. Given this wage will choice A, B or C be preferred. Briefly explain.-Choice A is cheapest. It employs 10 people and gets 100 computers.
3. A strong union is started and it manages to raise the wage of workers in this office to $40,000. Given this wage, will choice A, B or C be preferred. Briefly explain.- Choice B is best. It employs 6 people and gets 150 computers.
4. Based on your answer to the first two parts of the question, how has the union affected the number of jobs available? - With no union there were 10 jobs, with the union there was 6 jobs so the union affected the number of jobs negatively.
5. Based on your answer to the first two parts of this question, is there a reason to believe that a union worker will be able to handle more citizens than a nonunion worker was able to handle before the creation of the strong union?-