econ hmwk 2

econ hmwk 2 - has no bearing on the current cost The cost...

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Ryan Linton 9/28/07 Homework 2 1. Three units 2. Eight Units 3. Two Units 4. Four Units 5. Two reasons why a company might pay different wages in two different countries would be because there is a different cost of living in each country, and the price of labor might vary in each country. The price of labor refers to the idea that the company has to pay a certain price in order to have enough of a supply of labor. I think this is just, because the company is giving each set of workers enough to support themselves on. The point when it would turn out to be injust is if the company was making huge profits while its workers were struggling to live. The higher paid workers might strike because the cost of living might be higher, and although they are making more from a solely monetary standpoint, it might be less relatively than the lower paid workers. 6. The $300 that was paid for the class is a sunk cost and cannot be returned to the student, so it
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Unformatted text preview: has no bearing on the current cost. The cost would refer to marginal cost instead, so the cost of attending class would be the sleep that you were giving up, or something else that you could have been doing during taht class period. The cost of sleeping through class would be missing the information that was gone over in class as well as possibly receiving a zero on a pop quiz of some sort. 7. As the scientific research points to, I do think students at more expensive schools would study more, but I do not think it is due to the sole fact that they paid more. First of all, the students going to the more expensive school would probably have been better students in the first place because generally the admissions standards for the more expensive schoool would be higher. Also, since the more expensive school is most likely a better school, the classes would be harder and the students would have to study more just to do well anyways....
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This note was uploaded on 05/01/2008 for the course ECON 201 taught by Professor Wallace during the Fall '07 term at Wofford.

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