Resit with answers

Resit with answers - RESIT MN101 BUSINESS ANALYSIS AND...

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RESIT MN101 BUSINESS ANALYSIS AND DECISION MAKING RESIT MN101 BUSINESS ANALYSIS AND DECISIONMAKING 1.Answer both parts a) Define the concepts of ‘elasticity of demand for labour’ and ‘elasticity of  supply for labour’ and discuss factors that affect both.  b) use diagrams to show how different wages in two integrated competitive  labour markets (e.g. bus and lorry drivers) will converge in the long run. Elasticity of demand for labour •% change in quantity of labour demanded    % change in price of labour •Influenced by: –PED   of  product  produced  by  labour  (if  PED   is  inelastic  then  EDL  will   be  inelastic) –Proportion of total production costs accounted for by labour (if proportion is  small then EDL is inelastic) –Ease with which other factors of production can be substituted for labour (if it is  difficult to substitute labour for capital then a increase in  P of labour will have  little effect on demand for labour) Elasticity of supply for labour 1
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RESIT MN101 BUSINESS ANALYSIS AND DECISION MAKING •% change in quantity of labour supplied    % change in price of labour •Influenced by: –Degree to which labour is mobile, both geographically and occupationally –Time period in question 2. Deregulation can sometimes correct market failure.  Public interest theory  suggests that regulation should be removed if this increases surplus. Using a 
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This test prep was uploaded on 04/18/2008 for the course MGMT MN1015 taught by Professor Giouvris during the Spring '08 term at Royal Holloway.

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Resit with answers - RESIT MN101 BUSINESS ANALYSIS AND...

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