8. (30,2) Use both words and graphs to answer the following:
A. Show how the quantity of labor to be hired and the wage rate would be determined if the input market is perfectly competitive. The output market may be either perfectly competitive or imperfectly competitive.
B. Show how the quantity of labor to be hired and the wage rate would be determined if both the input market and the output market were imperfectly competitive.
9. (20,2) Use both isoquant analysis and one of the graphs showing the quantity of labor and wage rates from question 8 to show what can be expected to happen to the quantity of labor hired if the minimum wage is increased next year. Be sure to explain in words what is happening on your graphs."
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