Suppose that a labor economist performs a statistical analysis on economy-wide worker wages using standard, measurable explanatory factors, such as job characteristics, years of schooling, and so forth. how much of the variation in worker wages can be accounted for by such measurable explanatory factors? somewhat less than 50% somewhat more than 60% about 0% nearly 100% which of the following factors are typically omitted from the quantitative analysis of wages but can explain otherwise unaccounted for disparities? check all that apply. chance attractiveness years of experience effort natural ability

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers. firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?