Suppose that the production function is y= 9k0.5n0.5.with this production function, the marginal product of labor is mpn= 4.5k0.5n-0.5. the capital stock is k= 25. the labor supply curve is ns=100[(1−t)ω] 2, where wis the real wage rate, tis the tax rate on labor income, and hence (1−t)w is the after-tax real wage rate. a.assume that the tax rate on labor income, t, equals zero. find the equation of the labor demand curve. calculate the equilibrium levels of the real wage and employment, the level of full-employment output, and the total after-tax wage income of workers. b.repeat part (a) under the assumption that the tax rate on labor income, t, equals 0.6.c. suppose that a minimum wage of w= 2 is imposed. if the tax rate on labor income, t, equals zero, what are the resulting values of employment and the real wage? does the introduction of the minimum wage increase the total income of workers, taken as a group?

Fred smithers, a recent college graduate decided to open his own portable juice bar, smithers smoothies, to wheel around newport beach. you, a trusted friend of fred, are a business major that has also recently graduated and agreed to handle the books for a while to get some practical experience and have a favor that you can ask of fred in the future. given the following five transactions concerning the new venture, prepare the necessary journal entries for the transactions, post the journal entries to appropriate t accounts and prepare a trial balance as of the end of the month in order to answer to the necessary may 2: fred invests $12,000 of his own money to start the new company. this money was obtained from a part-time job working at a legal firm while he was in school. may 3: fred spent $5,100 cash to purchase a refrigerated trailer that he can pull behind his car and set up at the beach. under your advice, fred agrees to place the new asset under an account called "equipment." may 6: fred bought $640 of supplies on account from the flav-o-rite confectioners company. because they will last longer than a single accounting period fred agrees to record them as, "supplies" as per your suggestion. may 13: fred sat on the beach for six hours without a single sale and was feeling very down. right before he left, however, a plumber escorting his family reunion along the beach stopped by his stand and bought $800 worth of smoothies for the entire family. under your advice, fred agrees to call this cash revenue, "sales." may 15: excited about his new venture, fred withdraws $350 from the company to take his girlfriend out to dinner. what would be the balance in the cash account at the end of the period following the posting of all the transactions?