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question:For a labor market in a city or region assume that wages under bad times is 100 and under good times is 150. Let labor demand under bad times be 80 and under good times be 100. Assume that the price of the output good is 2,000 under bad times and 2,800 under good times. Also let MP=5-3.2L and is the same under good or bad times. Further assume that there is a 50/50 change of having good or bad times. Please produce the following:a) the output, revenue, and profits for a firm under bad times for a firm in isolation and in a pooled labor market.b) the output, revenue, and profits for a firm under good times for a firm in isolation and in a pooled labor market.
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This document contains various important questions and their appropriate answers in the subject field of Economics.
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