econ 301 notes

econ 301 notes - Wage taking firm Firm doing the hiring can...

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Wage taking firm- Firm doing the hiring can hire as much labor as it wants at the going competitive wage rates A firm needs to recognize when it is not in a position to decide wages (for a given quality of labor) Wage-taking= perfectly competitive labor market Firms can also be wage makers- that is, they are so large in order to hire more labor, they must increase the wage Internal rate of return, a special kind of interest rate. It equalizes the PU of 2 investment alternatives (e.g. go to work with a HS degree or get a associates degree in nursing 1 million figure does not account for the time value of money. PU(HS) and PU (BA) are much closer- on order of 30,000 at 10% interest rate- Brenda, craig, married so young, may be more likely to focus on raising a family and less career oriented. If barb plans on leaving the labor Opp cost of schooling is lower for jeple in sc that kyle is az (tougher to get a job) provided that such unemployment differences is ….
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This note was uploaded on 04/09/2008 for the course MGT 400 taught by Professor Roth during the Spring '08 term at Clemson.

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