2. Consider the model of labor pooling, with each firm locating either in an isolated site or in a cluster with other fi rms. Suppose that good times (high demand) and bad times (low demand) are equally likely. The table shows wages and workforces in different times and locations. Wage $40 $20 Isolated Workforce 50 50 Good times (high demand) Bad times (low demand) A. Use a figure like Figure 3-3 to illustrate the situation. Wage $30 $30 Cluster Workforce 60 40 B. During good times, the benefit of being in the cluster as opposed to being isolated is, computed as.... C. During bad times, the cost of being in the cluster as opposed to being isolated is, computed as....

2. Consider the model of labor pooling, with each firm locating either in an isolated site or in a cluster with other fi rms. Suppose that good times (high demand) and bad times (low demand) are equally likely. The table shows wages and workforces in different times and locations. Wage $40 $20 Isolated Workforce 50 50 Good times (high demand) Bad times (low demand) A. Use a figure like Figure 3-3 to illustrate the situation. Wage $30 $30 Cluster Workforce 60 40 B. During good times, the benefit of being in the cluster as opposed to being isolated is, computed as.... C. During bad times, the cost of being in the cluster as opposed to being isolated is, computed as....

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 1SCQ: Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and...

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