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Questions 12 through 14 are related. 12. sunrise i: p EDP-PP Refer to the articie titled San Francisco's Problem isn't Robots; It's the $15 Wage

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Questions 12 through 14 are related. 12. sunrise i: p EDP-PP" Refer to the articie titled \"San Francisco's Problem isn't Robots; It's the $15 Wage Floor" from the Wall Street Journal. Assume as in class Labor is on the horizontal axis and Kapital on the vertical axis and the firm currently produces 100 units at a cost of $1,000. When the minimum wage in San Francisco is raised to $15, the lsocost line representing Total Cost would: Shift to the left but remain parallel to the previous lsocost line and the cost of producing 100 units would increase. Shift to the right but remain parallel to the previous isocost iine and the cost of producing 100 units would increase. Rotate out from the current lsocost line, pivoting around its intersection on the vertical axis. and its slope will decrease and the cost of producing 100 units would increase. Rotate in from the current lsocost line, pivoting around its intersection on the vertical axis1 and its slope will increase and the cost of producing 100 units would increase. Rotate in from the current lsocost line, pivoting around its intersection on the horizontal axis, and its slope will increase and the cost of producing 100 units would increase. According to the article1 some officials in the city are proposing a "tax" on robots and automation, or Kapital. to prevent machines from replacing labor. If the minimum wage is currently $12 and will increase to $15, to restore the relative costs of wages and rent1 the tax on Kapitai would have to be: 25% 20% 15% 10% There is not enough information to determine the appropriate tax rate. Assume the tax imposed on Kapital restores the reiative costs of wages and rent. Then comparing the rm before and after the minimum wage increase and tax in the long term, we should expect the firm to: Continue employing the same amount of Labor and Kapital and producing the same quantity of output; albeit at increased Total, Average, and Marginal costs. Continue employing the same amount of Labor and Kapital and decrease the quantity of output. Reduce employment of Labor relative to Kapital and decrease the quantity of output. Increase employment of Labor relative to Kapital and decrease the quantity of output. Reduce employment of both Labor and KapitaI and decrease the quantity of output

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