subject
Business, 06.05.2020 05:57 hannah2757

Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described by these equations: Lm=1301–21Wm Ls=1221–23Ws where L is labor (in number of workers), W is the wage (in pesos), and the subscripts denote the sector. The economy has 505 workers who are willing and able to work in either sector. a. If workers are free to move between sectors what relationship will there be between Wm and Ws

b. Suppose that the condition in part a holds and wages adjust to equilibrate labor supply and labor demand. Calculate the wage and employment in each sector.

c. Suppose a union establishes itself in manufacturing and pushes manufacturing wage to 25. Calculate employment in manufacturing.

d. In the aftermath of the unionization of manufacturing, all workers who cannot get the highly paid union jobs move to the service sector. Calculate the wage and employment in services

e. Now suppose that workers have a reservation wage of 15 dollars= that is, rather than taking a job at a wage below 15 dollars, they would rather wait for a 25 dollar union job to open up. Calculate the wage and employment in each sector. What is the economy’s unemployment rate?

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 19:00, vpoon6739
If a company’s employees are angry about their work, a visiting auditor may also become agitated, illustrating the power of
Answers: 1
image
Business, 21.06.2019 22:30, indiareed0orv5ul
What two elements normally must exist before a person can be held liable for a crime
Answers: 1
image
Business, 22.06.2019 11:00, roseemariehunter12
In each of the following cases, find the unknown variable. ignore taxes. (do not round intermediate calculations and round your answers to the nearest whole number, e. g., 32.) accounting unit price unit variable cost fixed costs depreciation break-even 20,500 $ 44 $ 24 $ 275,000 $ 133,500 44 4,400,000 940,000 8,000 75 320,000 80,000
Answers: 3
image
Business, 22.06.2019 12:00, ddaaaeeee3503
Which of the following is one of the advantages primarily associated with a performance appraisal? (a) it protects employees against discrimination on the basis of race. (b) it motivates employees to work on their shortcomings. (c) it encourages employees to play the role of the whistle-blower. (d) it accurately measures the resources of the firm.
Answers: 2
You know the right answer?
Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing...

Questions in other subjects:

Konu
Mathematics, 06.05.2021 16:10
Konu
English, 06.05.2021 16:10