Why the difference between these wage rates equals

Assignment Help Econometrics
Reference no: EM131109663

The following figure shows the market for low skilled labor.

670_image05222015A461.png

The value of marginal product of high-skilled workers is $16 an hour greater than that of low skilled
workers at each quantity of labor. The cost of acquiring human capital adds $12 an hour to the wage that must be offered to attract high-skilled labor. Compare the equilibrium wage rates of low skilled labor and high-skilled labor. Explain why the difference between these wage rates equals the cost of acquiring human capital.

Reference no: EM131109663

Questions Cloud

A roasting-salting machine to produce roasted walnuts : (a) Calculate the annual depreciation charge using the straight-line method and the reducing balance method. Assume that an annual rate of 40% is applicable for the reducing balance method.
Periodic inventory by three methods : Bulldog Appliances uses the periodic inventory system. Details regarding the inventory of appliances at September 1, 2013, purchases invoices during the next 12 months, and the inventory count at August 31, 2014, are summarized as follows:
What is the present worth of the contract through the 3-year : what is the present worth of the contract through the 3-year treatment period at an interest rate of 1% per month?
Explain the differences between endotherms and exotherms : Explain the Differences between endotherms and exotherms. Definition and examples of epithelial tissue. (provide 1 example). Definition and examples of connective tissue. (provide 1 example)
Why the difference between these wage rates equals : Explain why the difference between these wage rates equals the cost of acquiring human capital.
Important determinants of school performance : Early-childhood environmental factors are said to be important determinants of school performance. What are some of these factors, how important do you think they are, and what might be done to ensure that these factors are not negative?
Long position in a futures contract : You have taken a long position in a futures contract on corn at $2.60 per bushel. Over the next 5 days the contract settled at 2.52, 2.57, 2.62, 2.68, and 2.70. You then decide to reverse your position in the futures market on the fifth day at close...
What should occur if the company rejects a candidate : Choosing the best candidate for an organization can require a great amount of time and effort for the human resources department. Often times, HR looks at both internal and external candidates. Discuss the firm's external and internal assessment g..
Find the profit-maximizing output for this firm : A perfectly competitive firm has total revenue and total cost curves given by: TR = 100Q. Find the profit-maximizing output for this firm. What profit does the firm make

Reviews

Write a Review

Econometrics Questions & Answers

  How long must the treated version last to be the preferred

A low-carbon-steel machine part, operating in a corrosive atmosphere lasts 6 yeras, and costs $350. If the part is first treated for corrosion resistance, it will cost $500 part ($150 more than just the part with no treatment) but lasts longer.

  How many years will it take for follower country to catch up

Assume that a "leader country" has real GDP per capita of $40,000, whereas a "follower country" has real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 7 perc..

  What interest should she get to be able to retire as desired

Ann Isabel, a recent graduate from Tech, would like to be a millionaire when she will retire after 30 years. She would like to start with a deposit of $1,000 at the end of the first year and increase it every year by $400 thereafter. What interest..

  What is the dollar rate of return on pound deposit

What is the dollar rate of return on a 10,000 pound deposit held in a British bank for a year when the British interest rate (annual) is 10 percent, and the exchange rate is $1.50 per pound at the beginning of the year, and is $1.38 per pound at t..

  Calculate the interest rate necessary to create cash flow

A geometrically increasing series of 20 end of year payments is deposited to fund an account. The first payment is $20,000, the geometric factor is 4%. The account is used for retirement purposes and will produce 30 consecutive

  How to select the better system based on bc analysis

A city government is considering two types of town dump sanitary systems, as shown below. Select the better system based on BC analysis at 8% social discount rate (same as MARR). Design A Design B Initial investment $400,000 $300,000

  What is the absolute size of the public debt in year 4

Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 2, a budget deficit of $20 billion in year 3, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year 4.

  Compute the monthly payment of a bank

A firm is considering the purchase of a machine with a price tag of $ 18,500. The firm is able to make a down payment of 3,500 and the balance is to be financed with a bank credit at an interest rate of 9.25% compounded daily.

  Graphically show the production possibilities frontier

Graphically demonstrate the production possibilities frontier for nation of Stromboli, using information given in the following table.

  Determine the price of the rleated commodity

Starting with the data fro Problem 6 and the data on the price of a related commodity for the years 1986 to 2005 given below, we estimated the regression for the quantity demanded for a commodity (which we now relable (Q x), on the price of the co..

  Should the owner of the store increase the price

If the price of a bottled water increases from $1.50 to $1.75, and demand decreases from 100 to 89 (per day), what is the price elasticity of demand Is it elastic or inelastic Should the owner of the store increase the price to $1.75 to increase t..

  How many units of two types of lawn mowers to produce a day

Billy Penny is trying to determine how many units of two types of lawn mowers to produce each day. One of these is the Standard model, while the other is the Deluxe model. The profit per unit on the Standard model is $60, while the profit per unit..

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