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Q. 1. (30,2) Use both words and graphs to answer following:
A. Explain how quantity of labour to be hired and wage rate would be determined if input market is perfectly competitive. output market may be either perfectly competitive or imperfectly competitive.
B. Explain how Explain how quantity of labour to be hired and wage rate would be determined if both input market and output market were imperfectly competitive.
2. (20,2) Use both isoquant analysis and one of graphs Explain how quantity of labour and wage rates from question 8 to Explain how illustrate what can be expected to happen to quantity of labour hired if minimum wage is increased next year. Be sure to explain in words illustrate what is happening on your graphs."
Illustrate what money supply should the Bank of Canada set next year if it wants inflation of 10 percent.
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The government has decided to reduce the pollution also from now on will require a pollution permit for each ton of pollution emitted.
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