In the United States, the semiconductor manufacturer illustrated in the figure to the 10 right produces using a wafer-handling stepper on isocost line C'. At its plant abroad, 200 ten - layer chips per day isoquant the wage is lower, so it faces a flatter isocost curve. If the wage is only slightly lower, 9 - so that its cost is C", it produces the same way as at home. However, if the wage is Wafer - handling steppe much lower, so that the isocost is Co, it switches to a stepper technology. In the figure, show that there is a wage and a cost of capital services such that the firm is indifferent between using the wafer - handling stepper technology and the stepper technology. K, Units of capital per day Stepper Use the line drawing tool to draw an isocost line where the wage and cost of capital are such that the firm is indifferent between using the wafer - handling stepper technology and the stepper technology. Label this line 'c". Carefully follow the instructions above and only draw the required objects. | Aligner B 3 6 8 9 L, Workers per dayWhat is the effect of a lump-sum franchise tax of t on the quantity at which a firm's after-tax average cost curve reaches a minimum? (Assume that the firm's before-tax average cost curve, AC-, is U-shaped.) Determine the average tax per unit of output. The average tax per unit of output, q, is ACBT average tax = . (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a fraction can be created with Cost per unit, $ the / character.) q, Units of outputYou are given the following data: 240- Cost = C = $12,000.00 220- 200- w = $100.00 per unit of labor 180 r = $100.00 per unit of capital These data are used to construct the isocost line (C') in the diagram to the right. Capital, K Suppose the wage increases to $200.00 but that the firm chooses to keep using the same amount of labor and capital to produce 200 units of output. Given this new set of factor prices (w' = $200.00, r =$100.00), how much have costs changed if the set of input choices remains at point A? $ . (Enter a numeric response using a real number rounded to two decimal places.) 20- 9 = 200 20 40 60 80 100 120 140 160 180 200 220 240 Labor, LAccording to Haskel and Sadun [2(109}. the United Kingdom started regulating the size of grocery stores in the early 1990s. and today. the average size of a typical UK grocer},r store is roughly half the size of a typical U3. store and two-thirds the size of a typical French store. What implications would such a restriction on size have on a store's average costs. Discuss in terms of economics ofscale and scope. ' ':- A. Grocery store size does not affect the long-run average cost of production if there are diseconomies of scale. '1._:2- B. Since grocery stores in the UK are smaller. their long-run average cost of production is lower if there are no economies of scale. '2._I:- C. Since grocery stores in the UK are smaller: their long-run average cost of production is lower if there are diseconornics of scale. -:j '2- D. Grocery store size does not affect the long-run average cost of production if there are economies of scale. -:j_j:- E. Since grocery stores in the UK are smaller. their long-run average cost of production is higher if there are diseconomics of scale