%3D b. After trading with Home, P; = $1 and Py = $2. Calculate VMPL, using P = $2. Put your answers in the table. Use your calculations to plot the new VMPL, curve in your diagram on the previous page. Determine the new Foreign labor market equilibrium, new labor allocation and its equilibrium wage Verify %AP; > %AW°. Lx MPLX VMPLX Ly MPLY VMPL, 10 15.1 10 15.9 20 11.4 20 10.5 30 10 30 8.2 40 8.7 40 6.9 50 7.8 50 6.0 60 7.4 60 5.4 70 6.9 70 5 80 6.6 80 4.6 90 6,3 90 4.3 100 6 100 4
%3D b. After trading with Home, P; = $1 and Py = $2. Calculate VMPL, using P = $2. Put your answers in the table. Use your calculations to plot the new VMPL, curve in your diagram on the previous page. Determine the new Foreign labor market equilibrium, new labor allocation and its equilibrium wage Verify %AP; > %AW°. Lx MPLX VMPLX Ly MPLY VMPL, 10 15.1 10 15.9 20 11.4 20 10.5 30 10 30 8.2 40 8.7 40 6.9 50 7.8 50 6.0 60 7.4 60 5.4 70 6.9 70 5 80 6.6 80 4.6 90 6,3 90 4.3 100 6 100 4
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Earnings, Productivity, And The Job Market
Section: Chapter Questions
Problem 11CQ
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Question
7
Transcribed Image Text:%3D
b. After trading with Home, P = $1 and P = $2.
Calculate VMPL, using P = $2. Put your answers in the table.
Use your calculations to plot the new VMPL, curve in your diagram on the previous page.
Determine the new Foreign labor market equilibrium, new labor allocation and its equilibrium wage
Verify %AP > %AW.
MPLX
VMPLX
Ly
MPLY
VMPL,
10
15.1
10
15.9
20
11.4
20
10.5
30
10
30
8.2
40
8.7
40
6.9
50
7.8
50
6.0
60
7.4
60
5.4
70
6,9
70
5
80
6.6
80
4.6
90
6,3
90
4.3
100
6.
100
4
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