Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Zinnia Marigold Q W VTP Q W VTP 1 $20 $20 1 $16 $16 2 18 38 2 14 30 3 16 54 3 12
Zinnia | Marigold | ||||
Q | W | VTP | Q | W | VTP |
1 | $20 | $20 | 1 | $16 | $16 |
2 | 18 | 38 | 2 | 14 | 30 |
3 | 16 | 54 | 3 | 12 | 42 |
4 | 14 | 68 | 4 | 10 | 52 |
Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the cumulative total product (output) of the particular number of workers. Assumptions: (1) The current wage in Zinnia is $18, and the current wage in Marigold is $10; (2) full employment exists in both countries. If migration is costless and unimpeded, the combined value of total product in the two countries will
Multiple Choice
- increase from $90 to $98.
- decline from $120 to $98.
- decline from $84 to $80.
- increase from $80 to $84.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started