Question A1 Explain with diagram, how the marginal and average cost curves of the typical pure competitor will shift or change for each of the following events: a) an increase in wages of all labor b) an increase in the rental payments on ofce machinery c} a technological advance d) an increase in sales taxes 6) an increase in property taxes - I W Question A2 Droughts in the Pacic Coast region of the US and regulations, in the form of limits on the amount of salmon that can be caught in the wild, have reduced the supply of wild salmon. These limits were imposed to avoid market failure in the salmon market. However, the effect of this on the revenue of salmon producers is uncertain. In addition, producers of farmed salmon in the US states of Washington and Alaska have received subsidies from the US government. a) Define supply. m) b) Explain one market failure that may occur in the salmon market. m c) Analyse how information on changes in a firm's revenue can be obtained from price elasticity of demand calculations. m d) Discuss how government can overcome market failure. e) Discuss whether or not government subsidies are benecial to producers. (W