Market Firm 3: (U a 5 WM I I : D uantity "" of Labor The graph above shows a labor market and a typical individual rm that is hiring labor from that market. (a) If WM 2 WF, from what type of labor market does the rm hire its workers? (lo) Assume the productivity of workers increases as a result of improvement in technology. What will happen to each of the following in the short run? (i) The market demand for labor (ii) The wage rate the rm will pay. Explain. (0) Suppose the rm only produces good X and that the price of good Y, a substitute good, decreases. What will happen to the optimal quantity of labor the rm will hire? Explain. (d) If the labor market were a monopsony, would the monopsonist hire more, fewer, or the same number of workers as QM to maximize its prot