Hi, I need help with B.3. Please.Thank you Answer ALL questions in this sectionAssume you can work as many hours you wish at £10 per hour (net of tax). If you donot work you have no income. You have no ability to borrow or lend, so your consumption,c, is simply equal to your income.В.3.В.1.a) A profit-maximising firm faces a downward-sloping demand curve for its output andhas marginal costs that increase with output. Show, on a single diagram, how itsprofit maximisation decision can be represented both in terms of a feasible setoptimisation and its marginal revenue and marginal cost. Why is there a deadweighta) Assume that your optimal choice of consumption and leisure is to work 8 hours perday. Illustrate this choice diagrammatically using the feasible set and indifferencecurves, defined in terms of daily values of consumption c, and "leisure", l= 24 minusloss in this casehours worked.b) Now assume the firın Is à cypical firm in a perfectly competitive market. Show thefirm's optimal choice alongside the market equilibrium, and briefly explain why thereis no deadweight loss in this case.b) Now assume that you receive non-labour income of £70 per week (i.e. irrespective ofhow much you work). Show the impact on your feasible set, and show a new optimalchoice in which consumption increases but labour supply decreases. Explain howsuch a change can be related to the properties of the Marginal Rate of Substitution/´c) Assume an initial equilibrium in which the firın in part b) is making a loss. Explainhow the market and a typical surviving firm will adjust in these circumstances so thatnormal profits will be made. You should illustrate your answer diagrammatically.c) Show that, for a sufficiently large non-labour income, it may be optimal not to workat all. Assuming this is the case, what would be the impact of an increase in yourhourly wageВ.2.В.4.a) Explain why individuals may try to smooth their consumption over their lifetime.Illustrate this concept with a diagram.a) Given a production function relating labour input to output, show diagrammaticallythe impact of an improvement in technology on total output and the average productb) Explain how borrowing constraints can impede the process of consumptionsmoothing. If many households are affected by such constraints, explain how this mayresult in a “Keynesian" consumption function.of labourb) Using a diagram, show how, in a Malthusian model, a one-off improvement intechnology, as in part a), will only have a temporary impact on living standards.c) In a closed economy Keynesian Cross framework show how a decline in investmentwill lead to a fall in income. Explain the role of the consumption function and themultiplier in this process.c) Use tne same diagrammatic framework to explain the role of technologicalimprovements, capital and demographic responses, in the historical experience ofcountries that have escaped from the Malthusian trap ( ^

B.3. Assume you can work as many hours you wish at £10 per hour (net of tax). If you do not work you have no income. You have no ability to borrow or lend, so your consumption, c, is simply equal to your income. a) Assume that your optimal choice of consumption and leisure is to work 8 hours per day. Illustrate this choice diagrammatically using the feasible set and indifference curves, defined in terms of daily values of consumption c, and "leisure", I= 24 minus hours worked.. b) Now assume that you receive non-labour income of £70 per week (i.e. irrespective of how much you work). Show the impact on your feasible set, and show a new optimal choice in which consumption increases but labour supply decreases. Explain how such a change can be related to the properties of the Marginal Rate of Substitution c) Show that, for a sufficiently large non-labour income, it may be optimal not to work at all. Assuming this is the case, what would be the impact of an increase in your hourly wage"