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Q. Explain the labor market in the cross model?
In cross model, both P and W are exogenous andconstant. Hence real wage is constant and it is not essentially equal to the equilibrium real wage. Model of the labor market in the cross model can be explained by the below figure:
Figure: The labor market in the cross model
In 2009, ABC Company made $2M of net profit and spent $100,000 on advertisement. In 2010, it made $2.5M of net profit and spent $150,000 of advertisement. Based on this information
Draw the supply and demand graph for pizza, then answer the questions below. SUPPLY OF AND DEMAND FOR PIZZA Quantity Supplied Price Quantity Demanded 300 $15.00 100 240 12.00 180 1
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Explain what convex indifference curves means in terms of marginal utility. What properties must a utility function have in order to obtain convex indifference curves?
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