n the specific factor model with two goods 1 and 2 and labour as the mobile factor, in the autarky equilibrium it must hold that A P1MPL1=P2MPL2 for marginal labour productivities MPL1 and MPL2 B MPL1=MPL2 for marginal labour productivities MPL1 and MPL2 C the wage w is given by w=MPL1/MPL2 D the wage w is given by w=P1/P2
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In the specific factor model with two goods 1 and 2 and labour as the mobile factor, in the autarky equilibrium it must hold that
A |
P1MPL1=P2MPL2 for marginal labour productivities MPL1 and MPL2 |
|
B |
MPL1=MPL2 for marginal labour productivities MPL1 and MPL2 |
|
C |
the wage w is given by w=MPL1/MPL2 |
|
D |
the wage w is given by w=P1/P2 |
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- Krusty Krabs has two burger locations. The first location has marginal productivity of MPL 400 - 2L1 = . The second location has marginal productivity of MPL₂= 200 L₂ . If there are 100 labors altogether, what is the allocation of labor to each of the two locations? L₁ = 100, L2 = 0 L₁ = 0, L2 = 100 L₁ = 50, L2 = 50 L1 = 100, L2 100, L2 = 100 Does not matter, as long as all 100 labors are allocated.Demonstrate using clearly labeled diagrams that the labor supply for leisure being normal (SE>IE) ismost inelastic, for leisure being inferior is most elastic and for neither case is somewhere in the middle.Suppose aggregate labour supply is measured as aggregate number of hours worked (L) given wage (w). A. Graph the labour supply if L = 3w. Write the formula for the (total) elasticity of labour supply in this case and substitute out L. After simplifying, the (total) elasticity of labour supply is B. Graph the labour supply if L = 16w. Write the formula for the (total) elasticity of labour supply in this case and substitute out L. After simplifying, the (total) elasticity of labour supply is C. Graph the labour supply if L = 3w - 3. Write the formula for the (total) elasticity of labour supply in this case and substitute out L.
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