Problem Three Labour Demand and Fixed Cost of Hiring Suppose a rm's marginal product of labour is given by M PPN = 30 0.5N. The wage rate is $20. Answer the following questions assuming that the rm has only a one-period planning horizon. Assume that there are no hiring costs. a) If the rm expects the price of output to be $20, calculate the optimal level of employment. b) Suppose the rm hires these workers and then the country signs a trade agreement so that the rm must sell its output at the world price, which is $10. How will this change the rm's employment level at the going wage rate? c) All else equal, identify two situations/changes under which the rm can maintain the pIe-trade employment level. Also, calculate the required percentage change in each case. Now assume that there is a xed hiring cost (FC) of $80 per worker. d) If the rm expects the price of output to be $20, nd the new value of labour's marginal product. What is the optimal level of employment? How does this compare to your answer in part (a)? e) If the rm hires these workers, but then nds out that the price of output is $10, show how it will adjust its labour force. f) Briey explain how your answer to part (e) changes if the output price is instead $3.5. (Round your answer to the nearest integer)