Economy, asked by shivamnayak36, 6 months ago

Suppose the marginal product of labor is MPN = 200 - 0.5N where N is aggregate employment. The aggregate quantity of labor supplied is 300 + 8w, where w is the real wage. What is the equilibrium quantity of employment?

Answers

Answered by rushikadam10
2

Explanation:

MPN = 200-0.5N

aggregate supply = 300+8w

At equilibrium w= MPN

W= 200-0.5(300+8w)

W= 200- 150-4w

4w+w = 200-150

5w = 50

w = 10

substitute value of w= w = 200 - 0.5N

W = 200 - 0.5N

10 = 200 - 0.5N

200-10 = 0.5N

190 = 0.5N

N = 190/0.5

N= 380

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