Problem #1: Kaiser's Ice Cream Parlor hires workers to produce smoothies. The market for smoothies is perfectly competitive, and the price of a smoothie is $4. The labor market is competitive, and the wage rate is $40 a day. The table shows the workers' total product schedule. Number of workers Quantity produced per day a. Calculate the marginal product of hiring the 4 worker and the value of the marginal product of the 4% worker. b. How many workers will Kaiser's hire to maximize its profit and how many smoothies a day will Kaiser's produce? c. If the price rises to $5 a smoothie, how many workers will Kaiser's hire? Problem #2: Marginal revenue product is defined as the change in total revenue that results from the employment of an additional unit of a resource. A widget producer wishes to determine how the addition of pounds of rubber will affect its MRP and profits. See the table below, and answer each of the questions. (40pts/1 Opts each) ~ Poundsof rubber Number of widgets ~ Price (quantity of (total product) of widgets ($) resource) 0 0 - 20 12 2 35 10 3 45 8 4 50 6 5 53 4 a. The marginal product of the 3" pound of rubber is b. The marginal revenue product of the 3" pound of rubber is : c. The price of rubber is $110 per pound. To maximize profit, the widget producer should produce d. The price of rubber is $110 per pound. To maximize profit, the widget producer should buy and use: /Problcm #3: See the table below. and answer each of the questions. $ Labor Market $ A Typical Employer a. Ifthe market represented in exhibit above is allowed to operate freely, total employment in the market will be b. Ifaunion raises the wage to $4, total employment in the market will be c. The approximate total surplus of labor after the union wage is d. If the market is allowed to operate freely, total employment by the typical employer (illustrated in the right-hand panel) will be : e. If a union raises the market wage to $4, total employment by the firm (in the right-hand panel) will be Question # Describe and show how a tariff works. Be sure to show graphically how it works