User Account

All Pages

Demand for labor in manufacturing and services

Assignment Help Business Management
Reference no: EM131709327

Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described by these equations:

???? =200-6???? ????????

???? =100-4???? ????????

where L is labor (in number of workers), W is the wage (in dollars), and the subscripts denote the sectors. The economy has 100 workers who are willing and able to work in either sector.

a. If workers are free to move between sectors, what relationship will there be between Wm and Ws?

b. Suppose that the condition in part (a) holds and wages adjust to equilibrate labor supply and labor demand. Calculate the wage and employment in each sector.

c. Suppose a union establishes itself in manufacturing and pushes the manufacturing wage to $25. Calculate employment in manufacturing.

d. In the aftermath of the unionization of manufacturing, all workers who cannot get the highly paid union jobs move to the service sector. Calculate the wage and employment in services.

e. Now suppose that workers have a reservation wage of $15-that is, rather than taking a job at a wage below $15, they would rather wait for a $25 union job to open up. Calculate the wage and employment in each sector. What is the economy's unemployment rate?

Reference no: EM131709327

Questions Cloud

Intermediate microeconomics-production : Pfeitzer is a monopolist for a new drug that makes people feel thinner. The total cost function is C(Q) = 100 + 12Q + 2Q2 .
Value base pricing and selling is based on the concept : Value base pricing/selling is based on the concept:
In what amounts were determinations made by the ceo : The employer established a performance-based bonus plan under which workers who were not exempt from the minimum wage and overtime provisions of the FLSA.
Approached by an elderly relative who trusts your judgment : You have been approached by an elderly relative who trusts your judgment.
Demand for labor in manufacturing and services : Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described by these equations:
Create a table of temperature and rtd resistance : Create a table of temperature, RTD resistance, RTD resistance adjusted for self-heating, LED Status. Test your circuit and use the table to display your result.
Describe what role each would play in decision process : Identify six members of the buying center. Try to identify their job titles/roles at university. Briefly describe what role each would play in decision process.
Review problem related to the lunch break : A company allowed its employees to take a halfhour lunch break. However, the break was uncompensated, and the employees were not permitted to leave.
Law of diminishing marginal utility : 1. Define and explain the relationship between total utility, marginal utility, and the law of diminishing marginal utility.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd