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