Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Classical model of the labor market?
We begin by explaining the classical model of the labor market.
The demand for labor LDis assumed to be inversely related to the real wage W/P
Profit-maximizing firms would want to use labor up to the point where marginal product of labor MPL is equal to the real wage W/P. We have previously presumed that MPL is decreasing in L and demand for labor can be explained in the following graph.
Figure: The demand for labor
From the graph you can conclude that aggregate demand for labor, or just the demand for labor depends on the real wage. If the real wage increases, demand for labor decreases and vice versa. For instance, the demand for labor will fall if W increases and/or if P decreases however it won't change if W and P increase by the same percentage.
In the classical model, markets are characterized by perfect competition and firms can't affect W and P. Though, they do decide how much labor to hire. If you sum all the labor that firms want to hire you get total demand for labor.
How do the five competitive forces in Porter's model affect the profitability of the overall industry? For example, in what way might weak forces increase industry profits, and in
developing countries benefit through international trade from developed countries
What is money and what is not money If you are trying to conclude if something is money, simply consider whether it would be accepted in most stores as payment. You then realiz
what are the advantages and disadvantages of a national income and green GDP? national income figures are often used to compare living standards across countries and through time.
it has been argued that economic development of developing countries has been held back by a persistent fall in the terms of trade of developing countries over the long run
Suppose an advertising agency is conducting a survey concerning the effectiveness of commercials during the Super Bowl. If 32% of people watch the Super Bowl, and if the agency con
Maximum profits will occur at the output level where is the greatest vertical distance between Total Revenue(TR) AND Total Cost(TC. uSE THE TOTAL REVENUE-TOTAL COST CURVES TO Illus
How central bank increases the target rate Let's say that the central bank increases the target rate. When the target rate increases, the central bank needs to raise the overni
Question 1: "Motivation denotes to the degree of readiness of an organism to pursue some designated goal and implies the evaluation of the nature and locus of the forces, inclu
list of macro-economics problems of indian economy
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd