Major League Baseball draft pick compensation: How to evaluate the marginal product of labor of drafted playersThe Major League Baseball draft is virtually the only means by which US and US territory born players have access to becoming major league baseball players. As a condition of their ...
The efficient allocation of labor between the rural and urban sectors would correspond to point B, where both sectors have the same marginal value product of labor and all workers are employed. Rural-urban wage differentials, unemployment, and efficiency wages: an open economy policy analysis More...
Explain how the value of marginal product of labor relates to the labor demand curve. Give an example. Consider the following statements related to the Heckscher-Ohlin (HO) model. (i) In contrast to the assumption of constant opportunity costs in the Ricardian model, the production possibility ...
Marginal revenue product (MRP), also known as the marginal value product, is the marginal revenue created due to an addition of one unit of resource. The marginal revenue product is calculated by multiplying the marginal physical product (MPP) of the resource by the marginal revenue (MR) gener...
Proof. With balanced growth it has been established that σ = 1, whilst the labor supply and profit conditions take the form and the proof will be complete if we can argue that the left hand bracket is strictly positive with probability one. To do so suppose the converse, then it follows...
Describe the difference between a diminishing marginal product of labor and a negative marginal product of labor. Why would a profit-maximizing firm always choose to operate where the marginal product What is an example of inverse market demand? How does it differ from market...
Production costs, which are also known as product costs, areincurred by a business when it manufacturesa product or provides a service. These costs include a variety of expenses. For example, manufacturers have production costs related to the raw materials and labor needed to create the product....
If C= 50 + 0.75 Y I=100 G=150 and there are no net exports or taxes what is the equilibrium level of GDP? How is price level and real GDP related in an Aggregate supply graph? Explain how imports and exports relate to GDP.
The short run is characterized by at least one fixed input while other inputs are variable. Meanwhile, the long run is a period in which all inputs can be varied. Firms have the flexibility to adjust all factors of production including capital, labor, and technology. This means that firms...
There are several reasons why economies of scale give rise tolower per-unit costs. First, specialization oflaborand more integrated technology boost production volumes. Second, lower per-unit costs can come from bulk orders from suppliers, larger advertising buys, or lowercosts of capital. Third,...