The absence of discrimination-equilibrium wage
Course:- Business Economics
Reference No.:- EM131090348

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Economics

Kyle and Jeremiah own firms that produce winter mittens. Suppose the firm’s production function is given by Q =10 or L is the number of workers hired by the firm. It can be shown that the marginal product of labor is then MPL = Assume that in the absence of discrimination, the equilibrium wage is $10 per hour. The price of each unit of output is $20. Profits are equal to: Π = PQ – WL There are two groups of workers, short and tall people, and these groups are equally productive. Kyle’s firm discriminates against short people by a factor of $10.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
In 2010, U.S. investors purchased $50 billion in foreign assets, and foreigners purchased $100 billion in U.S. assets such as stocks and Treasury bills. In addition, U.S. busi
Analytical essay about "Why bother with theory in IPE? The essay should deal with a brief description and critical assessment of the four major theoretical perspectives discus
how this arrangement with Delta and United could have caused the value of SkyWest to increase so dramatically even though it limited the amount of profit the company could
Amy the architect and Bill the builder both have the same preferences, given by: U = (C – 180) (L – 50) 2 If Amy works, she receives a wage w a = £10 per hour worked. Bill mea
The following table shows the hypothetical labor requirements per ton of wool and per hand-knotted rug, for New Zealand and for India. Labor Requirements per Unit New Zealand
In the Clean Air Act as amended, Congress allowed California, which has serious problems with air quality, to adopt its own standards for emissions from cars and trucks, subje
Project LMN has an initial cost of $10,000 and annual cash inflows of $2,825, $3,192, $3,607, and $4,076 in years 1–4. What is the NPV assuming a 12% discount rate? When the p
The common law has always allowed all adults executing a will to partially or completely disinherit all, some or none of their children, adult or minor, as they see fit. No re