Question: Discuss the determination of equilibrium input price and employment by
Discuss the determination of equilibrium input price and employment by a competitive industry. Concerning the equilibrium, firms would prefer to pay less for an input; why don’t they? Input owners would prefer to receive a higher price; why don’t they refuse to supply the input unless the price is higher?
Relevant Questions“Recently, the demand for DVD players has increased rapidly, while the demand for radios has hardly budged. Therefore, the fact that workers are better paid in the DVD player industry is not surprising.” Would you be ...Economists Ross Eckert and Richard Leftwich have noted that in the early 1950s, over 60 percent of MBA graduates from leading business schools took their first jobs in manufacturing and 10 percent in investment banking and ...What do we mean when we say that capital is productive? How do we measure this productivity? What does productivity have to do with the investment demand curve?Explain why the Social Security program reduces before-tax wage rates and why this effect is greater over the long run than in the short run.If Cisco has a monopoly in the server market, what efficiency condition is violated? Would the regulation of Cisco and the elimination of Cisco’s profit lead to a more efficient allocation of resources? Will all members of ...
Post your question