(a) Draw a diagram of the industry, with an arrow from any seller to any buyer. Specify the upstream and downstream rms. (b) Assume that a shoe manufacturer plans to produce 256 shoes. Draw the isoquant curve and identify at least three points on it. (c) Assume that the price of shoe machines is 8. To produce 256 shoes, what combination of capital and labor should a shoe rm use? ((1) Now assume that the shoe machine rm merges with one of the shoe rms. To produce 256 shoes, what combination of capital and labor should the merged rm use? Hint: Your answers should follow our discussion of shoe industry in class, but with different numbers. In particular, you can use the formula ME = 53. In this problem, M Pk = ZLK and MPL = K2. MPL PL