Question

The supply in these markets, denoted “h-sub-t,” varies according to the intertemporal substitution hypothesis. Equilibrium prices in these markets may be shifted by a “compensating differential” depending on the preferences of participants. Mortenson and Pissarides won the 2010 Nobel in Economics for modeling transactions in these markets using search and matching theory. Under perfect competition, the (*) MRPL is equal to the equilibrium (10[2])price in these markets. (10[2])Monopsony power (10[2])is exemplified (10[2])by markets for this factor (10[2])with only one buyer, (10[2])as in mining towns. (10[3])This factor and a factor symbolized (10[1])K are the usual inputs in a production function. For 10 points, name this factor of production supplied by workers. (10[7])■END■ (10[12])

Back to tossups

Buzzes

Summary