11:16 Fri 10O Dec* 9 80%•..managebac-prod-china.s3.cn-north-1.amazonaws.com.cn APage 8 of 46AP Microeconomics9 of 46AP CollegeBoardTest BookletUnit 5 Problem Set - FRQ'sInclude correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagrammust have all axes and curves clearly labeled and must show directional changes. If the question prompts you to"Calculate," you must show how you arrived at your final answer.Central Manufacturing Company is the only manufacturing facility in a small remote town, and Central ManufacturingCompany is the only employer of machinists in the area. The graph below shows the market for machinists with themarginal factor (resource) cost curve, the labor supply curve, and the marginal revenue product curve.120MarginalFactor CostSupply7563574536MarginalRevenue Product15210 300600800 Quantity ofMachinists105420 480150 240380560(a) If the wage rate is $63, state whether there will be a shortage or a surplus of machinists and calculate its size. Showyour work.(b) Identify the profit-maximizing number of machinists. Explain using the labeling on the graph.(c) Identify the profit-maximizing wage rate that Central Manufacturing Company will pay its machinists. Explain usingthe labeling on the graph.(d) If the marginal product of machinists increases, what will happen to the quantity of output produced by CentralManufacturing Company? Explain.(e) Assume instead that Central Manufacturing Company uses both labor and capital in producing widgets. The marginalproduct of the last unit of labor hired is 120 widgets per day and the marginal product of the last unit of capital rented isAP MicroeconomicsPage 9 of 46Wage Rate ($) 11:16 Fri 10 Dec* O 80%0..AA rod-china.s3.cn-north-1.amazonaws.com.cnUnit 5 MCC * Start PageEmily XuEmily Xumanagebac...Emily XuAP MicroeconomicsPage 19 of 4620 of 46AP CollegeBoardTest BookletUnit 5 Problem Set - FRQ'sNumber ofUnskilled Workers Quantity of RadiosProduced (per day)Hired1204536047075679780Assume that HZRad Company produces clock radios as shown in the short-run production function in the table above.HZRad can sell all the clock radios it produces at a market price of $20 each and can hire all the unskilled labor it needs ata 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 HZRad's current supply curve forunskilled labor.b. What is HZRad's profit-maximizing output level? Explain.c. Suppose that HZRad is the first company to use a new technology that increases the productivity of its unskilledworkers.i. How will the new technology affect the quantity of unskilled labor HZRad hires? Explain.ii. How will the new technology affect the wage paid to HZRad's unskilled workers?17.Respond to all parts of the question.Please respond on separate paper, following directions from your teacher.

Question

11:16 Fri 10O Dec* 9 80%•..managebac-prod-china.s3.cn-north-1.amazonaws.com.cn APage 8 of 46AP Microeconomics9 of 46AP CollegeBoardTest BookletUnit 5 Problem Set - FRQ'sInclude correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagrammust have all axes and curves clearly labeled and must show directional changes. If the question prompts you to&#34;Calculate,&#34; you must show how you arrived at your final answer.Central Manufacturing Company is the only manufacturing facility in a small remote town, and Central ManufacturingCompany is the only employer of machinists in the area. The graph below shows the market for machinists with themarginal factor (resource) cost curve, the labor supply curve, and the marginal revenue product curve.120MarginalFactor CostSupply7563574536MarginalRevenue Product15210 300600800 Quantity ofMachinists105420 480150 240380560(a) If the wage rate is $63, state whether there will be a shortage or a surplus of machinists and calculate its size. Showyour work.(b) Identify the profit-maximizing number of machinists. Explain using the labeling on the graph.(c) Identify the profit-maximizing wage rate that Central Manufacturing Company will pay its machinists. Explain usingthe labeling on the graph.(d) If the marginal product of machinists increases, what will happen to the quantity of output produced by CentralManufacturing Company? Explain.(e) Assume instead that Central Manufacturing Company uses both labor and capital in producing widgets. The marginalproduct of the last unit of labor hired is 120 widgets per day and the marginal product of the last unit of capital rented isAP MicroeconomicsPage 9 of 46Wage Rate ($) 11:16 Fri 10 Dec* O 80%0..AA rod-china.s3.cn-north-1.amazonaws.com.cnUnit 5 MCC * Start PageEmily XuEmily Xumanagebac...Emily XuAP MicroeconomicsPage 19 of 4620 of 46AP CollegeBoardTest BookletUnit 5 Problem Set - FRQ'sNumber ofUnskilled Workers Quantity of RadiosProduced (per day)Hired1204536047075679780Assume that HZRad Company produces clock radios as shown in the short-run production function in the table above.HZRad can sell all the clock radios it produces at a market price of $20 each and can hire all the unskilled labor it needs ata 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 HZRad's current supply curve forunskilled labor.b. What is HZRad's profit-maximizing output level? Explain.c. Suppose that HZRad is the first company to use a new technology that increases the productivity of its unskilledworkers.i. How will the new technology affect the quantity of unskilled labor HZRad hires? Explain.ii. How will the new technology affect the wage paid to HZRad's unskilled workers?17.Respond to all parts of the question.Please respond on separate paper, following directions from your teacher.

Accepted Answer

Disclaimer :- it is multiple type questions so we are supposed to solve only the first one. But the…