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(a) On a figure with dollars per hour on the vertical axis and hours of labor supplied on the horizontal axis, please sketch the driver's
(a) On a figure with dollars per hour on the vertical axis and hours of labor supplied on the horizontal axis, please sketch the driver's marginal benefit from providing labor. Note: If the driver supplies more hours, she raises the probability of getting work, but at a diminishing rate. (i) Explain how a reduction in the fare affects the marginal benefit from providing labor. Consider both the direct effect of the fare and the indirect effect (lower fare attracts more customers and raises the probability that the driver gets work). (ii) From a driver's viewpoint, what is the optimal quantity of labor to supply
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