Labor Supply Wage (per hour) 0 SO 1 $1 2 $2 3 $3 4 $4 5 $5 6 $16 7 $24 8 $32 9 $40 10 $48 C. ( In which scenario (a or b) are profits higher for the firm? d. In which scenario (a or b) is the welfare of the labor force in this market higher? Which scenario (a or b) yields a greater total surplus/welfare?Suppose that a rm has the following production function. Also suppose that the only costs the firm experiences are the costs associated with their labor. utout per hour a.i _ Suppose that the rm is perfectly competitive in both the market for their output and their market for labor. Suppose that the equilibrium price of their product is $10 and that the equilibrium wage for labor is Winn Determine the prot maximizing quantity of labor for ' the rm to hire. is. _ ,1 instead, suppose that the firm holds monopsonilr power in the market for labor and faces the labor supply cunre below. Continue to assume that the rm is perfectly competitive in the market for their output where the equilibrium price Is 51!] and that their production function is as defined above. Determine the profit maintimizinar quantity and wage for their labor. (Hint: to calculate the marginal cost of labor. rst calculate total post at each level of employment [workers " wage}. then calculate marginal cost per usual i.e. for each additional worker how do costs change?)