This preview shows page 1. Sign up to view the full content.
Unformatted text preview: -Increases after demand increases because the marginal product of the worker increases in relation to increases in price.-When the marginal product goes up it increases demand for the worker-Outcome may not be as predictable for a single firm, but for the market demand for labor increases Monopolistically competitive firms The difference between this and competitive is that each individual firm has a monopoly on its own slightly different product, gives downwards sloping demand curve. Tax deductions Some is set apart at the beginning with zero tax rate. Then there is a deduction for number of people in the family...
View Full Document
This note was uploaded on 04/28/2008 for the course ECON 101 taught by Professor Buckles during the Spring '08 term at Vanderbilt.
- Spring '08