Assume a competitive industry in long-run equilibrium

Assignment Help Business Economics
Reference no: EM13772704

Assume a competitive industry in long-run equilibrium. The industry exhibits increasing costs. All the workers in the industry earn the minimum wage. Suppose the minimum wage is increased by 15%.

a) What is the short-run response of the industry and the firms within it?

b) In the long-run, what happens to equilibrium price, individual firm output, industry output, and the number of firms in the industry?

c) What happens to the total number of workers employed in the industry?

Reference no: EM13772704

Questions Cloud

At least two best practices for each of the hrm functional : The Senior Vice President of Human Resources has just informed you that she would like for you to research various HRM practices of Fortune 500 companies. This research will be presented to the board of trustees next month. They want to review other ..
Income tax rate and capital gains tax rate : Investors in the JMJ Group purchased hotel resort in April. The group paid $25M for the building and the land. The land was appraised $5M. The group sold the resort 3 years later in August for $30M. The land was appraised then at $10M. If the income ..
Methods that paralegals could employ : Determine two (2) methods that paralegals could employ to help keep the cost of e-research affordable. Identify one (1) advantage and one (1) disadvantage for each method
Prepear a presentation on the frog princess : Prepear a Presentation on The Frog Princess.
Assume a competitive industry in long-run equilibrium : Assume a competitive industry in long-run equilibrium. The industry exhibits increasing costs. All the workers in the industry earn the minimum wage. Suppose the minimum wage is increased by 15%. What is the short-run response of the industry and the..
Interests and positions of key stakeholders : Over the past few units you have discussed research and the multiple actors involved in environmental policy in order to evaluate programs and issues. For this Assignment, choose an environmental policy or program that interests you and create a p..
Determine the influence of business on alternative sources : Determine the influence of business on alternative sources and forms of lawmaking (constitutional law, case law, executive lawmaking, and administrative law)
If there is an inflationary gap in the economy : If there is an inflationary gap in the economy, what fiscal policy decisions would you make to bring the economy back to the full employment point? Explain why in each policy that you make.
Principle of financial accounting issues : Accounts receivable (net) increased by $500,000 during the year. This increase has what effect on cash flow?

Reviews

Write a Review

Business Economics Questions & Answers

  Find marginal rate of substitution for indifference curve

show mathematicallt whether the mardinal utility for (X1) and (X2) is increasing or decreasing. Find the Marginal rate of substitution for the indifference curve generated by the utility function.

  What is an implication of pattern shown

What are data in table saying. What is an implication of pattern shown. What are data in table saying. What is an explanation for pattern shown.

  Courts should refuse to enforce extremely unfair bargains

People often change the form of a promise in an attempt to increase their certainty that courts will enforce it according to its terms. For example, suppose the rich uncle in Example 1 wanted to assure his nephew of the enforceability of the promise ..

  What criteria would you apply to determine

What criteria would you apply to determine where such a policy is or is not successful. Judging from your own stated criteria, was Japan's exercise successful.

  Explain the difference between a movement along a supply

Explain the difference between a movement along a supply curve predicted by the Law of Supply and a shift of the whole supply curve or short termed as a shift or change of supply.

  Is this estimator unbiased also what is its variance

Given a sample of observations on yt and xt what is the most efficient estimator of mu? Is this estimator unbiased? What is its variance? What is the OLS estimator of mu?

  What is the effective interest rate and the apr

Some lenders charge an up-front fee on a loan, which is subtracted from what the borrower receives. This is typically described as "points" (where one point equals 1% of the loan amount). The federal government requires that this be accounted for in ..

  Calculate the gdp of autoland using a

A glass factory sold $1,000,000 of glass to an automobile factory. An automobile factory sold $10,000,000 in automobiles to final consumers. Given these events, calculate the GDP of Autoland using a. the final goods approach. b. the value-add..

  Investment spending and aggregate spending

Keynes said it was the stock market crash of October, 1929 that was the trigger mechanism for the Great Contraction from 1929 to 1933. He believed that the crash caused expectations to become catastrophically pessimistic. Use the Keynesian Cross Mode..

  Give an example of an event or incident that has taken place

Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific, e.g., 9/11 attack,

  How much will the quantity of federal funds have to change

Assuming no change in demand, will the Fed need to increase or decrease the supply of Federal funds? By how much will the quantity of Federal funds have to change for the equilibrium to occur at new target rate?

  Cost and revenue estimates to determine

How would you use these cost and revenue estimates to determine whether a sales force increase or possibly a decrease is warranted.

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