Q2Imagine there are 100 firms in a competitive product market who hire labour in a perfectly competitive labourmarket.Assume that the value of the marginal product of labour for a single firm is: VM Py = 10-4NDerive the market labour demand curve Nd.+ Drag and drop an image or PDF file or click to browse...Q2Suppose the labour supply curve is: NS = 10+ WDraw the labour market for this industry and calculate equilibrium.Q2 cSuppose the government institutes a payroll tax of $3 an hour on employers. How does the influence the labourmarket? Draw a diagram and calculate the new equilibrium.+ Drag and drop an image or PDF file or click to browse...Q2 dWho actually pays the majority of this payroll tax? Why?+ Drag and drop an image or PDF file or click to browse...

The competitive market structure is a market in which there are large number of buyers and sellers.…

Imagine there are 100 firms in a competitive product market who hire labour in a perfectly competitive labour market. Assume that the value of the marginal product of labour for a single firm is: VM PN 10- 4N Derive the market labour demand curve Nd. + Drag and drop an image or PDF file or click to browse..