(1) In terms of supply and demand analysis, what are some factors that could have caused the hypothesized fall in wages from W0 to W1 for this organization.
(2) Why would the organization represented in the firm want to increase its labour input to L1.
(3) How would it be possible for the organization to increase its labour input to L1, without having to increase wages to attract workers.
(4) From my understanding the shift from MRPL0 to MRPL1 can be the result of an increase in the scale of production (please correct me if I am wrong). In terms of factors of production, what does an increase in the scale of production and the shift of the MRPL curve to the right imply and what could have happened to bring this change about.