Suppose a project will need to hire 20 workers in a local labor market in which 200 workers are employed, 80 are unemployed, and the going wage is $30,000. A project staff member calculates the social opportunity cost of hiring the labor as $600,000 for purposes of doing a project BCA. What is wrong with this calculation? Offer and defend a better calculation. Include a sketch depicting the conditions in the labor market.

Suppose a project will need to hire 20 workers in a local labor market in which 200 workers are employed, 80 are unemployed, and the going wage is $30,000. A project staff member calculates the social opportunity cost of hiring the labor as $600,000 for purposes of doing a project BCA. What is wrong with this calculation? Offer and defend a better calculation. Include a sketch depicting the conditions in the labor market.

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter10: Labor Market And Income Distribution

Section10.8: Discrimination

Problem 1YTE

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