1. Assume that Fisher Company produces clock radios as shown in the short-run production function in the table below. Fisher can sell all the clock radios it produces at a market price of $20 each and can hire all the unskilled labor it needs at a wage of $90 per day per worker. Assume also that labor is the only variable input.


(a) Using the specific information above, draw a correctly labeled graph of Fisher’s current supply curve for unskilled labor. (b) What is Fisher’s profit-maximizing output level? Explain? (c) Suppose that Fisher is the first company to use a new technology that increases the productivity of its unskilled workers. (i) How will the new technology affect the quantity of unskilled labor Fisher hires? Explain. (ii) How will the new technology affect the wage paid to Fisher’s unskilled workers.