Consider a situation in which an economic downturn reduces the demand for the output that an industry produces, and so for the input factors used to produce it. Often this leads to firms laying off workers. Discuss the issues associated with decisions of which factors to cut back on (Labor? or Capital?), Also, in the case of labor, discuss the issues of determining which particular people would have their hours cut (partially or entirely).
Consider a situation in which an economic downturn reduces the demand for the output that an industry produces, and so for the input factors used to produce it. Often this leads to firms laying off workers. Discuss the issues associated with decisions of which factors to cut back on (Labor? or Capital?), Also, in the case of labor, discuss the issues of determining which particular people would have their hours cut (partially or entirely).
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: The Markets For The Factor Of Production
Section: Chapter Questions
Problem 9PA
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5. Consider a situation in which an economic downturn reduces the demand for the output that an industry produces, and so for the input factors used to produce it. Often this leads to firms laying off workers. Discuss the issues associated with decisions of which factors to cut back on (Labor? or Capital?), Also, in the case of labor, discuss the issues of determining which particular people would have their hours cut (partially or entirely).
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This is related to a survey of economics class. This is the book: Anderson, D., Survey of Economics. (2020). Worth Publisher Macmillan learning. chapter 11 and 12.
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