Question
In a country called Uncle Sam Land (USL), the labor demand curve is given by: W = K - 4L Where W is the wage
In a country called Uncle Sam Land (USL), the labor demand curve is given by:
W = K - 4L
Where W is the wage rate, K is a variable determined by accumulated capital stock in the country, and L is the labor force in the country.
Currently, K = 500 is supplied by the capitalists.
The country has built a strong impenetrable border wall to prevent outsiders from moving in. The labor force is thus currently fixed at 100 (L = 100). All workers work no matter what the wage is.
What is the national income (all wages plus all income of the capitalists) in this country?
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