Question Three. 1. Look at the diagram below. Consider the scenario where citizens have almost all the bargaining power. What will be the equilibrium outcome in this scenario (draw it on the graph)? (4) Slope - Business' MRS 100 Iso unit cost, firm's shutdown' condition In this region, the firm shuts down In this region citizens leave town Slope of citizens indifference curves MRS Citizens reservation indifference curve leave town condition Wages 2. What are some factors that could give citizen's more bargaining power? Why would it not be perfect (in other words why would they not have all the bargaining power)? (4) 3. Bonus. What is the economic logic for why w* stays fixed? (Not the mathematical reason). (2) Quality of the environment, E

Question Three. 1. Look at the diagram below. Consider the scenario where citizens have almost all the bargaining power. What will be the equilibrium outcome in this scenario (draw it on the graph)? (4) Slope - Business' MRS 100 Iso unit cost, firm's shutdown' condition In this region, the firm shuts down In this region citizens leave town Slope of citizens indifference curves MRS Citizens reservation indifference curve leave town condition Wages 2. What are some factors that could give citizen's more bargaining power? Why would it not be perfect (in other words why would they not have all the bargaining power)? (4) 3. Bonus. What is the economic logic for why w* stays fixed? (Not the mathematical reason). (2) Quality of the environment, E

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In your own words/don't copy from the internet write 800 word How do firms contribute to the efficiency of the market economy in ways that networks of independent contractors do not? Use your organization, or one with which you are familiar, to illustrate your response.
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Each widget firm has the cost structure illustrated in the left graph below. The right graph illustrates two different possible demand curves for widgets, D1 and D2. MC ATC D2 AVC D1 0123456789 10 11 400 1200 1500 2000 2400 2000 Suppose the required assumptions for a perfectly elastic long run supply curve hold for the widget industry. Also, assume that the demand for widgets is depicted by the demand curve D1, and that the industry is in long-run equilibrium. What is the long- run output (quantity produced) for the entire industry? O 1600 1200 2000 O 800 O 400 Previous
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