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Explain how an employer must balance out the costs and benefits of increasing the worker's wage rate. In particular, according to the efficiency wage theory thus outlined, how would an employer determine the proper wage level to offer their employees?
1. if the hhi for the widget industry is 1200 then the market structure isa. impossible to determineb. an oligopoly.c.
Construct a table showing the marginal failure reduction (in units) and the dollar value of these reductions for each inspector hired.
Assuming no population growth or technological progress, find the steady state capital stock per worker, output per worker, consumption per worker and investment per worker given that the rate of saving is 20% and depreciation rate is 10%.
Discuss the difference between a traditional monopoly and a natural monopoly. Include the following points in your discussion. Identify the incentives to produce and price the product for a traditional monopoly and natural monopoly.
Suppose that an increase in jewellery demand induces a a surge for in the demand for gold. Using diagrams from part a show what happens in the short run to the gold market and to each existing gold mine.
Suppose the total liabilities are £560,000 the amount owed to unsecured creditors is £375,500, and an unsecured creditor who is owed £50,000 receives £18,000 the expenses of winding up the business are £4,500.
Your boss offers you a wage increase of 10 percent. Is it possible that you are worse off with the wage increase than you were before? Explain your answer using proper economic terms and analysis
Analyse the effect of an expansionary monetary policy (purchase of government bonds) on the equilibrium interest rate an income in a liquidity trap using the IS-LM model (closed economy and fixed prices). Analyse and discuss.
What do we call the expenditures for newly produced capital goods (such as machinery, equipment, tools, and buildings) and for additions to inventories?
1. calculate ae given the information below and completely fill in the table.2. where is equilibrium in this economy
If money demand for speculative purpose is$ 5000 and money demanded for transaction motive is $ 40 000. if money demanded for speculative purpose increases by $ 5000, what is the new total demand for money using Keynesian Theory of Money Demand.
Illustrate rate of growth in fuel costs justifies going ahead with the insulation plan? Make sure that the rate of growth and the discount rate are aligned in terms of periodss.
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