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

Example on lotteries in the united states, Most lotteries in the United Sta...

Most lotteries in the United States pay their winnings over time. For illustration, a million-dollar winner will receive $100,000 initially and the rest in equal installments over

Comparative economics system, Identify path of growth and development to ec...

Identify path of growth and development to economic maturity.

2 econ problems, I have the answers to these two questions, but I need to k...

I have the answers to these two questions, but I need to know HOW to get these answers. Thanks. Question 1 Suppose there are two goods beverage and pizza and two inputs land, T

Functions of the central bank, Functions of the Central Bank: Currency...

Functions of the Central Bank: Currency issue and distribution: The Central Bank is the only institution empowered by law to issue currency notes and coins that are used as a

Incentive perverse, a) Explain the perverse incentive. b) What makes the...

a) Explain the perverse incentive. b) What makes the incentive perverse? c) How could the incentive makers better the incentive?

Consumer and producer surplus, Suppose that demand is downward sloping and ...

Suppose that demand is downward sloping and supply upward sloping. Subsidies cause dead weight loss despite the fact that: 1)consumer surplus increases. 2)total surplus increases

Explain the market failure and coordination failure, 1).Explain a coordinat...

1).Explain a coordination failure. Using the Prisoner's Dilemma example above, discuss coordination failure. 2). What's a Market Failure? Please define the circumstances under w

#titlecosumer;s choise involving risk.., #question.describing risk,preferen...

#question.describing risk,preference towards risk, the demand for risky assest.

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