Marginal revenue productivity theory, Microeconomics

Assignment Help:

Problem 1:

i) Distinguish between the different types of concentration measures.

ii) Derive and explain the Dorfman and Steiner (1954) condition for optimal advertising.

Problem 2:

i) Outline how the marginal revenue productivity (MRP) theory suggests that level of wages in an industry is determined under both perfect and imperfect competition?

ii) Suppose a firm is a monopsonist in the labour market it hires. Its MRP of labour is 14 - L and the wage rate is W = 2 + L.

a. How much labour the firm will hire and what wage rate it will pay?

b. How much labour it will hire and use if a minimum wage rate of $ 10 is imposed on it.


Related Discussions:- Marginal revenue productivity theory

Individual deman curves for two perfectly competitive market, Individual de...

Individual demand curves for two perfectly competitive market TC1=10q1+1/2q1^2+100 = firm 1 TC2=10q2+q2^2+100

Determine the amount of composite commodities, a)  Joan's utility function ...

a)  Joan's utility function can roughly be estimated as : U = 60Q 1 3/4 Q 2 2/3 She chooses from two composite commodities Q 1 and Q 2 whose prices per unit are kshs 20

Exit strategy, Exit Strategy The exit strategy denotes that which inves...

Exit Strategy The exit strategy denotes that which investors in an organizations realize all or elements of their investment, regardless of the organizations success.

Nursing, Questions 1. Mrs Holt, 85 years old, has been admitted to acute ca...

Questions 1. Mrs Holt, 85 years old, has been admitted to acute care following a fall resulting in a fractured femur. She is a widow and lives alone with her three cats for compa

Oxidation, what is oxidizing agent

what is oxidizing agent

Case study on exceptions to the law of demand., can i get a case study on s...

can i get a case study on share market or any other company about their exceptions to the law of demand?

Draw an indifference curve for consumption, Draw an indifference curve for ...

Draw an indifference curve for consumption and hours of work. (Hint: in class we discussed indifference curves for consumption and hours of leisure, this is different.)

Explain supply and demand diagrams, During the 1990s, technological advance...

During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following markets are affected in terms of

Reverse logistic behaviour of supply chain, Purpose: this case is intended ...

Purpose: this case is intended to model supply chain, especially the reverse logistic behaviour. Description: In Cal Poly Pomona, TOM301 (Operations Management) is a core cou

Write Your Message!

Captcha
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!

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