(a) The following table shows the relationship between the number of workers employed and outputs at Wendy's Cafe. Cups of Coffee Produced (per day) Number of Workers 50 95 135 170 200 6. 225 Suppose the market price of cach cup of coffee is $20, and the market daily wage for each worker is S800. In order to maximize profit, how many workers should Wendy's Cafe employ? Explain and show the steps of your calculations. (b) The following diagram shows the market for medical checkup. 20 PV 400 500 What are the equilibrium price and quantity of medical chbeckup? i. Which kind of externality problems exists in the market for medical checkup? How does this externality problem affect the efficiency of the market? Explain in detail. iii. How can the government solve this externality problem? Explain in detail.

(a) The following table shows the relationship between the number of workers employed and outputs at Wendy's Cafe. Cups of Coffee Produced (per day) Number of Workers 50 95 135 170 200 6. 225 Suppose the market price of cach cup of coffee is $20, and the market daily wage for each worker is S800. In order to maximize profit, how many workers should Wendy's Cafe employ? Explain and show the steps of your calculations. (b) The following diagram shows the market for medical checkup. 20 PV 400 500 What are the equilibrium price and quantity of medical chbeckup? i. Which kind of externality problems exists in the market for medical checkup? How does this externality problem affect the efficiency of the market? Explain in detail. iii. How can the government solve this externality problem? Explain in detail.