Which of the following is a term referring to an unwritten agreement in the labor market that the employer will try to keep wages from falling when the economy is weak or the business is having trouble, and the employee will not expect huge salary increases when the economy or the business is strong?
a. efficiency wage theory
b. relative wage coordination argument.
c. implicit contract
d. insider-outsider model
c. implicit contract
Economics
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The Cobb-Douglas production function for a beer manufacturer is q=1.52L0.6K0.4. Assume that the firm's capital is fixed at 250 units, the rental rate of capital is $5 per unit, and the wage rate is $10 per hour
The amount of labor needed to produce q units of output is A) 0.0124q. B) 13.832q0.6. C) 0.0124q1.67. D) 13.832q1.67.
Economics