All the standard assumptions of the Big Push model apply. The total labor force is 3,000. There are 50 industries. The modern sector wage is equal to $3/hr. In the modern sector, firms need at least 10 people to produce any output. Also, c (the marginal labor required for an extra unit of output) is equal to 0.2 such that the modern sector production function is L = 10 + 0.2*Q
Answer in whole numbers (no decimal places). Do not use a dollar sign or any other symbol. You may use a minus sign to indicate loss (as opposed to profit).
Answer for a single industry (not the whole economy)
Find:

-total cost of traditional sector
-total revenue in traditional sector
-profit or loss in traditional sector
-total cost for first firm to enter modern sector
-total revenue for first firm to enter modern sector
-profit or loss for first firm to enter modern sector
-total cost for a modern sector firm once there is an established industrialized economy would be
-total revenue for a modern sector firm once there is an established industrialized economy would be
-profit or loss for a modern sector firm once there is an established industrialized economy would be

Answer rating: 100% (QA)

total cost of traditional sector The total cost of the traditional sector is TTC 300010 02Q 5033 1100 total revenue in traditional sector Total revenue in the traditional sector is RTC 300010 02Q 1000 ... View the full answer