The figure shows some iso-profit curves for a language school, indicating the different levels of N and w that earn the same amount of profit, and the no-shirking wage curve. Based on this information, read the following statements and select the correct option(s).
Image failed to load: Iso-profit curves for a language school and no-shirking wage curve

Question

The figure shows some iso-profit curves for a language school, indicating the different levels of N and w that earn the same amount of profit, and the no-shirking wage curve. Based on this information, read the following statements and select the correct option(s).

Image failed to load: Iso-profit curves for a language school and no-shirking wage curve

Answer

If the revenue per tutor reduces to €600, the feasible set will expand.

Answer

The maximum profit attainable for the school is $1000

Answer

If the no-shirking wage curve becomes flatter while keeping the vertical axis intercept unchanged, the school will employ more tutors.

Answer

There are feasible points that give a profit of at least $4000.

Crowdly

The figure shows some iso-profit curves for a language school, indicating the di...

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