Qlestion 1: Firm Costs in Competitive Equilibrium Daliah runs the construction crew that is installing the steel beams being used to frame the new Shultz Building at the Hoover Institution. The following (incomplete) table illustrates the costs of installing various quantities of steel beams on a given day. Because Stanford has already purchased the steel beams, Dahlia's only inputs are the construction crane and workers. a. Fill in the blanks in the table to determine Daliah's cost structure. How much does it cost to hire a worker for a day? How much does it cost to rent the crane? # of Steel # of Fixed Cost Variable Total Cost Marginal Average Beams Workers Cost Cost Total Cost Installed ---M---- ------- ------- -----m- b. Each morning, Daliah arrives on campus for her daily planning meeting with Hoover Director lCondoleezza Rice. If Daliah has already booked the crane for that day, what price per beam installation does Condi need to offer Daliah in order for Daliah to cover the cost of paying her construction crew for that day? How many beams will the crew install, at this price? If this is the market price of beam installation in the Bay Area, what will Daliah do when her contract with the crane owner ends? c. If the market for steel beam installation is perfectly competitive and in long-run equilibrium, what will Condi pay Daliah per installed beam? At this price, how long will it take to build the Schultz Building if it contains 60 steel beams? d. Because of a labor shortage, Dalial'i must raise wages by $50 in order to attract construction workers. Fill in the following table with Daliah's new cost structure. How do your answers to parts b. and c. change? Average Total Cost e. Draw the supply curve for Daljah's construction crew before and after the wage increase on the same graph