Productivity-cost and firm demand for production factor
Problem: What is meant by productivity, cost, and firm demand for one production factor. Can you please explain?
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a. Draw the supply and demand curves for pounds, and determine the equilibrium exchange rate (dollars per pound). b. Suppose that the supply of pounds doubles. Draw the new supply curve.
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Why do we have such extreme diversity in pay in the US---sport stars, actors, others making very high salaries while others make much less? What does economic theory tell us on this topic?
Define the economic characteristics of the market structures (Perfect Competition, Monopolistic Competition, Oligopoly and Monopoly).
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