The total number of workers in the economy is L. The only difference between the sectors is

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The total number of workers in the economy is L. The only difference between the sectors is that in Sector 1 workers are paid their marginal products, whereas in Sector 2 they are paid their average products. Workers move freely between sectors so that the wages are equal.

Calculate how many workers will work in each sector

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Economic Growth

ISBN: 9780273769293

3rd Edition

Authors: David N Weil

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