Suppose that the production function is Y$=$

$99$

K$$Superscript$0\mathrm{.}5$N$$Superscript$0\mathrm{.}5.$

With this production$$ function, the marginal product of labor is MPN$=$

$4\mathrm{.}54\mathrm{.}5$

K$$Superscript$0\mathrm{.}5/$

N$$Superscript$0\mathrm{.}5.$

The labor supply curve is NS$=$

$105105$times $[(1$

minus$$

t$)$times $$w

$]$Superscript$2,$

where w is the real wage$$ rate, t is the tax rate on labor$$ income, and hence$(1$

minus$$

t$)$times $$w

is the$$ after$-$tax real wage rate.

The capital stock is K$=$

$2525.$

Assume that the tax rate on labor$$ income,

t$,$

equals zero.

Which of the following equations represents the labor demand$$ curve?

A$.$

ND$=45/$

N$$Superscript$0\mathrm{.}5$

B$.$

ND$=$

$125/$w

C$.$

ND$=$

$125$times $$N$$Superscript$0\mathrm{.}5$

$$

D$.$

ND$=$

$112\mathrm{.}5/$w$$Superscript$2$

E$.$

ND$=$

$506\mathrm{.}25506\mathrm{.}25/$w$$Superscript$2$

Part $2$

The equilibrium level of the real wage is

enter your response here

$($Round

your answer to two decimal

places$).$

Part $3$

The equilibrium level of employment is

enter your response here

$($Round

your answer to one decimal

place$).$

Part $4$

Total$$ after$-$tax wage income of workers is

$$$enter your response here

$($Round

your answer to two decimal

places$).$