Suppose That the Wage Is $20 Per Hour in a Two­sector

question 114

Essay

Suppose that the wage is $20 per hour in a two­sector
(manufacturing and agriculture) specific­factors model.
Currently, the prices of manufactured and agricultural
outputs are $5 and $1, respectively; the marginal
product of labor in the manufactured sector is 6 units
per hour; and the marginal product of labor in the
agricultural sector is 10 units per hour.What will
happen to the rentals on land and capital?

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Definitions:

Profit Sharing Plans

A corporate incentive program where employees receive a portion of the company's profits in addition to their regular salary.

Highly Interdependent

Refers to entities or processes that are closely linked and significantly affect or rely on each other.

Performance-based Reward

A compensation or recognition system where rewards are given based on the evaluation of an individual's performance, usually intended to incentive higher levels of output or quality.

Team-based Reward

Incentive systems designed to reward groups or teams for achieving specific goals or outcomes.