Refer to the given data, symbols, and assumptions. If migration is costless and unimpeded:
Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the cumulative total product (output) of the particular number of workers.
Assumptions: (1) The current wage in Zinnia is $20 and the current wage in Marigold is $12; (2) full employment exists in both countries.
A. no migration will occur.
B. migration will cause the wage in Marigold to fall.
C. 2 workers will move from Marigold to Zinnia.
D. 4 workers will move from Marigold to Zinnia.
C. 2 workers will move from Marigold to Zinnia.
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What strategic advantage compared to a Cournot Oligopoly results in the Stackelberg outcome?
A) the ability to move first B) the ability to set price C) the ability to set quantity D) the ability to make independent decisions by the Stackelberg leader
Refer to Scenario 12.3. What will be the price of this new drink in the long run if the industry is a Cournot duopoly?
A) $3 B) $9 C) $12 D) $13.50 E) none of the above