8. Discuss (or show graphically) why a minimum wage (set above the market wage) produces unemployment in a perfectly competitive model.

Q: 7. Consider a competitive labor market where the market demand and the market supply are given…

A: * ANSWER:-

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A: Technology shocks alters the production function.

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A: (Option D) 10 is the correct answer

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A: Here Answer is “Employ more capital and less labour because MPK/MPL > PK/PL.”

Q: Q) The market demand for the output is P = 80-Q, where Q is the output level and P is the price per…

A: A labor market is where workers and employees cooperate with one another.

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A: Given,  Demand : LD = 10-0.5WSupply : LS = 0.5W

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A: Given:Potential GDP=$800 billion

Q: 8. Use the production data shown here on the left and the labor supply data on the right for a…

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A: `“Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In a perfectly competitive labour market, firms are wage takers and the marginal cost of labour…

A: When talking about perfectly competitive labour market, it is the market place, where wages are…

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A: Given; Labor Supply; Ls=1+wLabor demand; Ld=11-w

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A: Option B is the correct Answer

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A: Long-run equilibrium refers to the time period where all factors of production are variable.

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