Exploring Economics
Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
Question
Chapter 12, Problem 15P
To determine

To explain:

The story of long-run equilibrium in a perfectly competitive industry illustrated by invisible hand rule.

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part  D E urgently need I.          Two firms, Tac-Burger Ltd. and Back-rib-Burger Ltd., use the same technology to produce output that is given by: Q = 600(F1/2 + M1/3) K  where  F = Female worker; M = Male worker; K = capital With the price of good (P) set at $1, Tac-Burger pays female an hourly wage WF and male a wage WM. The price of capital (r) is $1 and the quantity of capital is fixed at 1. Back-rib-Burger pays a wage W to both male and female.   a.         The Press went after Tac-Burger accusing the company of gender discrimination. The CEO replied that their company was in the business to make money and their remuneration policy is consistent with the basic theory of profit maximization taught in basic principles of economics and managerial economics. What convincing argument must be put forward by the press to show that Tac-Burger indeed practices gender discrimination? What proof should the CEO provide to convince the public that the wage practice is fair?    b.…
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In McCulloch v. Maryland (1819), the Supreme Court held that:   a. congress was not allowed to outlaw slavery in U.S. territories   b. the federal government had the implied power to create a national bank   c. states had the ability to restrict interstate commerce within their jurisdiction   d. the Supreme Court could declare acts of Congress to be unconstitutional   e. state-chartered banks were immune from federal regulation
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