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Assume the firm mark up over the cost is 10% and the wage setting equation is W=P (1-u) where U is the unemployment rate.
a) Search the real wage rate implied by the price setting equation.
b) Examine the natural rate of unemployment.
c) Place the wage- setting and price setting equation or a property labelled graph and identity the nature rate of unemployment.
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Cost Str ucture: The bond of a firm fixed costs to its variable costs. Firms with high fixed costs and low variable costs have a cost construction where a high volume
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Whom do you think Rajender will eat with? why? If you were one of other foremen, what could you do to make Rajender''s transition easier?
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