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part a makes sense but please explain parts b and c in depth 7. The very small economy of Lilliput has at total labor force

part a makes sense but please explain parts b and c in depth image text in transcribed
7. The very small economy of Lilliput has at total labor force of 20 workers. These workers can produce two goods, manufactures and food. In production of manufactures, the marginal product of labor depends on employment as follows: Number of Workers 1 2 3 4 5 6 7 8 9 10 11 12 MPL of Last Worker 34 32 30 28 26 24 22 20 18 16 14 12 In the food sector, the marginal product of labor is independent of employment, and is 10. The world price of a unit of food is $8, and the world price of a unit of manufactures is $5. For each part below, show all work and briefly explain your answer. a. Suppose there were no distortion in the labor market; find (i) the wage rate, (ii) the allocation of labor between manufactures and food, (iii) the output of each good, and (iv) the total dollar value of output in this economy b. Now, suppose that for some reason the minimum wage in the manufactures sector is $160. Full employment, however, is maintained. Find (i) the allocation of labor between manufactures and food, (ii) the output of each good, and (iii) the total dollar value of output in this economy. (iv) How large is the cost of the distortion in terms of the dollar value of lost output? c. Finally, suppose that workers migrate from the country to the city until the wage of city workers multiplied by the probability of being employed equals the rural wage. Find (i) the urban unemployment rate, (ii) the allocation of labor between manufacturing, urban unemployment, and the food sector, (iii) the output of each good, and (iv) the total dollar value of output in this economy. (v) How large is the cost of the distortion in terms of the dollar value of lost output, when compared to part

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