Practice Questions for Week 3 (Chapter 27} 1. The Dupont Corporation produces tvshirts which it sells all across the globe. Since there are many other companies that sell t-shirts1 the Dupont Corporation must sell its product at the global market price1 which is given by p. The Dupont Corporation howeverr is the only employer in the town of Dupont. The corporation produces t-shirts using labour as an input1 according to the production function y = lN H.525N2... where y is the numher oi t-shirts produced1 and N is the numher of workers hired. 1|Workers in the town of Dupont supply their labour according to the following labour supply function: N 2 mo: Hit"!1 where N is the number of workers who are willing to work at a wage of m. [a] Suppose that the market price [or t-shirts is p = 1. How many workers will the Dupont Corporation hire'.' [h] How many tvshirts will it sell? [c] How much will it pay its workers? [d] How much will be the rm's prots? [e] Draw a graph that illustrates your answer to the above questions1 with labour on the horizontal axis and wages on the vertical axis. [I] 1v'i'hat type of policy could the government in Dupont enact in order to increase the wage of its residents without reducing employment in the town