demand for labor is given by LD = 80 – 10w. (a) What will be the free-market wage rate and employment level? Suppose the government sets a minimum wage of $5 per hour. How many people would then be employed? (b) Suppose that instead of a minimum wage, the government pays a subsidy of $1 per hour for each employee. What will the total level of employment be now? What will the equilibrium wage rate be? Answer. (a) In a free-market equilibrium, LS = LD. Solving yields w = $4 and LS = LD = 40. If the
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DeVry ECON 312 Midterm Exam - Latest IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load http://www.acehomework.net/wp-admin/post.php?post=1964&action=edit IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM DeVry ECON 312 Midterm Exam - Latest Page 1 Question 1.1. (TCO 1) As a consequence of the condition of scarcity (Points : 3) there is never enough of anything. production has to be centrally planned. things which are plentiful have relatively
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Shandell N. Coleman January 26, 2012 Eco Hmwk # 3 Chapter 5: 1. A firm in a perfectly competitive market invents a new method of production that lowers its marginal cost. What happens to its output? What happens to the price it charges? a. The firm has an employee who threatens to tell all other firms in the industry about how to implement this new technique. Will it be possible to bribe the employee not to do this? Explain why or why not? b. Why should this employee probably not choose
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Economics 300 Homework #9 Name _______________________ Due ______________ Part 1 - Complete the Following Chapter Problems: Attach any extra pages to this cover sheet. Chapter 9: Discussion Questions: 2, 4, 5, 9, 10 Problems: 1, 3, 4, 12, 14, 15 Spreadsheet Problems: 1 Appendix Problems: 2 Part 2 – Additional Problems: Attach any extra pages or printouts to this cover sheet. 1. A consultant estimates that the demand for the output of Marston Chemical
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Learning Team Reflection ECO/365 Learning Team Reflection Week three with its emphasis on market structure provided some areas of greater understanding than the previous week's focus on production and cost analysis. The topics of comfort increased and it seemed that more of the team members agreed with their areas of understanding. While some of the topics did provide a mild amount of difficulties in understanding, it certainly can be seen how the subject matter learned through the team paper
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2012 1. Buyers and sellers are price takers in a perfectly competitive market because there is large number of firms operating in the market all selling the same commodity produced using same technology. No one has an edge over the other so the company. Also the firms can enter and leave the market easily and all buyers and sellers have an access to the market condition. So no sellers are large enough to affect the price. The market determines the price. 2.
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Introduction The porter forces model was first developed in 1979 by Michael .F. Porter of the Harvard as structure for assessing and evaluating the competitive position and power of an organization, the model is grounded on the concept that there are five forces which ascertain the competitive intensity of the market (Porter, 2008). Figure 1.1 shows a diagram of the five forces model, (Flesicher, 2007) Porter’s five forces model is quite useful and it provides a number of benefits , its most
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can be described as a perfectly competitive market where there are many producers, all sharing a small share of the market. All of the producers are putting out a similar standardized product, there is easy access for any new firm to enter the market. There is very little restrictions from the government or inadequate access to vital resources. There is easy entry and exit from this type of industry and there is no concentration which means that the market is very competitive (Krugman & Robin, 2009)
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research and analysis as the cartel included seventeen manufacturers in six European countries and had a lifespan of twelve years. These quick facts demonstrate just how serious, extensive and carefully covered the agreement was. Not only did this market manipulation have a significant effect on the economy of these six countries, but also on the economic situation of the European Union as a whole and therefore touched the global economy. As the case is so extensive, it is important to gain an economical
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D) greater than the absolute value of the slope of the demand curve. Answer: B 4) If demand is perfectly inelastic, the absolute value of the price elasticity of demand is A) zero. B) less than one. C) more than one. D) equal to the absolute value of the slope of the demand curve. Answer: A 5) Seth is a competitive body builder. He says he has to have his 12-oz package of protein powder to "feed his muscles" every day. On the basis
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