a. Derive the short-run labour demand curve of an individual competitive firm. Be sure to state all of your assumptions clearly. b. Illustrate this demand curve in a carefully labeled diagram. c. Suppose that a technological innovation allows firms to produce more output with the same amount of capital and labour. How does this affect the firm's short-run labour demand curve? Explain with reference to your derivation and assumptions in part a. d. Illustrate the effect of this technological innovation on the labour demand curve using your diagram in b. **please make the diagram**

a. Derive the short-run labour demand curve of an individual competitive firm. Be sure to state all of your assumptions clearly. b. Illustrate this demand curve in a carefully labeled diagram. c. Suppose that a technological innovation allows firms to produce more output with the same amount of capital and labour. How does this affect the firm's short-run labour demand curve? Explain with reference to your derivation and assumptions in part a. d. Illustrate the effect of this technological innovation on the labour demand curve using your diagram in b. please make the diagram

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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