B. if the firm faces a horizontal supply curve of labor at, Ask an Expert

Economics

Consider a firm that faces an upward sloping labor supply curve.

a.) What factors might account for such a curve?
b.) If the firm faces a horizontal supply curve of labor at W*, how would it determine E*, the equilibrium level of of employment?
c.) Since it is an upward sloping curve, it will not pick E*. How will it decide how much labor to employ, and how will the equilibrium level of employment (E**) compare with E*? Explain the reason for the difference between E* and E**

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9497338

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