Problem 3. The Labor Market. 20 points 1. (5 points) Explain why is a company in the robotics industry more likely to pay efficiency wages compared to a company in the fast food industry. 2. (5 points) Explain the effect of a decrease in the average markup charged by firms on the natural rate of unemployment and the real wage. (Hint: use the medium-run equilibrium condition in the labor market WS = PS) 3. (5 points) Explain what are the effects of a low unemployment rate on (a) the job-finding probability, and (b) on the wage-setting bargaining power of workers. 4. (5 points) Explain why nominal wages are a function of the expected price level