An oconomy has two sectors, Sector 1 and Soctor 2. For simplicity, assumo both sectors only uso labor Inproduction, and labor Is homogeneous. Lot MPL = marglnal product of labor, APL = averago product oflabor, (WIP) = real wage, the most officlont allocation of labor for this economy happens when (note: asubscript danotos the sactor, o.g., (WIP), is the real wage pald in Sector 1)O A. (W/P)1 = AP4 and (W/P)2 = APL2OB. (W/P)1 APL1= (W/P)2 APL2OC (W/P)1 = MPL1 and (W/P)2 = MPL2O D. (W/P)1 = MPL1 = (W/P)2 = MPL2%3D

When the marginal effort that a worker puts in(which is a benefit for the firm) is equivalent to the…

An oconomy has two sectors, Sector 1 and Soctor 2. For simplicity, assumo both soctors only uso labor In production, and labor Is homogeneous. Lot MPL = marglnal product of labor, APL = averago product of labor, (W/P) = roal wago, tho most officlont allocation of labor for this oconomy happens when (note: a subscript donotos the sactor, o.g, (W/P), is the real wage pald in Sector 1) %3D OA. (W/P)1 =AP4 and (W/P)2= APL2 OB. (W/P)1 APL1 = (W/P)2 = APL2 OC (W/P)1 = MPL1 and (W/P)2 MPL2 OD. (W/P)1 = MPL1= (W/P)2 = MPL2

An oconomy has two sectors, Sector 1 and Soctor 2. For simplicity, assumo both soctors only uso labor In production, and labor Is homogeneous. Lot MPL = marglnal product of labor, APL = averago product of labor, (W/P) = roal wago, tho most officlont allocation of labor for this oconomy happens when (note: a subscript donotos the sactor, o.g, (W/P), is the real wage pald in Sector 1) %3D OA. (W/P)1 =AP4 and (W/P)2= APL2 OB. (W/P)1 APL1 = (W/P)2 = APL2 OC (W/P)1 = MPL1 and (W/P)2 MPL2 OD. (W/P)1 = MPL1= (W/P)2 = MPL2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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