C. In an effort to stimulate employment in this industry, the government offers firms a subsidy of $3 per unit of labour hired. Analyze the effects of the subsidy on the level of employment and the workers wages. d. The government's opposition parties accuse the government of catering to "corporate welfare bums" with the wage subsidy/handout. They suggest that the money would be better spent by putting it directly into the hands of the workers. They propose that the government should directly give workers an additional $3 for each unit of labour worked Evaluate the argument put forward by the opposition parties by comparing workers' employment and incomes (wages plus government bonus) to the scheme in part (c). 4. Suppose Fraser Forest is the only employer for lumberjacks in a small town. Every lumberjack can cut one tree per hour, and Fraser Forest sells each tree for $100. At an hourly wage w, 20(w- 10) lumberjacks are willing to work (nobody wants to work for less than $10/hour). Assume that labor is the firm's only cost. a) How many lumberjacks will the firm hire? What is the wage rate paid by the firm? Draw a graph to show your answer. b) What is the firm's profit (per hour)? Now suppose there are many small firms hiring lumberjacks. Lumber price and labor supply are the same as before. c) How many lumberjacks will be hired in equilibrium ? What is the wage rate paid to each lumberjack in equilibrium ? Draw a graph to show your answer. d) What is each firm's profit (per hour )