161 Prob Set 3

2 usethefollowinginformationtoanswerthequestionsbelow

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: of labor in terms of agriculture? c. Are workers better off, worse off, or is the outcome ambiguous? 2. Use the following information to answer the questions below: Manufacturing: Sales revenue = PM QM = 150 Payments to labor = W LM =100 Payments to capital =RK K= 50 Agriculture: Sales revenue PA QA =150 Payments to labor =WLA=50 Payments to land = RT T = 100 Holding the price of manufacturing constant, suppose the increase in the price of agriculture is 10% and the increase in the wage is 5%. a) Determine t...
View Full Document

This note was uploaded on 10/06/2013 for the course EC 161 taught by Professor Fusillo during the Fall '12 term at Tufts.

Ask a homework question - tutors are online