Econ assessment 3 - Amal Radia Econ Assessment 3 This would...

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Amal Radia Econ Assessment 3 This would be positively sloped because the more hours in training, the workers want more wage. Since it is convex, as the hours increase, workers would want even more wage. For example, if they double the hours trained, they would expect more than double their wage. The direction of preference would be to the top left towards Beta. The Red curve represents the High Quality worker and the green represents the low quality worker. The H quality is flatter because it was given that they found training less distasteful, therefore they would need a smaller increment in wage for an additional hour in training.
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The red, to the left of the EQ, will generate positive profits for the firm while the blue will generate negative profits. The purple dot represents Equilibrium, and this is where the firm breaks even. If it is a competitive market, we expect firms to make 0 profit, and this is represented by the purple dot. C)
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Econ assessment 3 - Amal Radia Econ Assessment 3 This would...

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