Bigfoot Corp manufactures shoes in the small town of Here It is the only employer in town, and Here is too far from anywhere else for townspeople to work elsewhere Men and women are equally productive they each produce two pairs of shoes a day, which Bigfoot sells in the (perfectly competitive) shoe market at a price of $20 per pair The labor supply curves of men and women respectively are given by Lm 25 wm 250 Lw 50 ww 1000 where wmand wwrepresent men's and women's wage rates (a)How many men and how many women will Bigfoot employ, and what wage rates will it pay them, if it wishes to maximize profits How much profit does Bigfoot make (b)What would be the socially efficient employment levels and wage rates How much profit does Bigfoot make under this scenario How much better off would society as a whole be in this case as compared to your solution to (a)

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Bigfoot Corp  manufactures shoes in the small town of Here  It is the only employer in town, and Here is too far from anywhere else for townspeople to work elsewhere  Men and women are equally productive  they each produce two pairs of shoes a day, which Bigfoot sells in the (perfectly competitive) shoe market at a price of $20 per pair  The labor supply curves of men and women respectively are given by Lm  25 wm  250 Lw  50 ww  1000 where wmand wwrepresent men's and women's wage rates  (a)How many men and how many women will Bigfoot employ, and what wage rates will it pay them, if it wishes to maximize profits  How much profit does Bigfoot make  (b)What would be the socially efficient employment levels and wage rates  How much profit does Bigfoot make under this scenario  How much better off would society as a whole be in this case as compared to your solution to (a)

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Bigfoot Corp. manufactures shoes in the small town of Here. It is the only employer in town, and Here is too far from anywhere else

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