a) Employ the skill circle model and calculate skill range, skill range and total labor cost per worker when there are 240 workers and unit training cost is $1260/h and the wage equals $80/h. Training cost is to be borne by the firm. b) Now assume the firm moves to a smaller location and the number of workers is only a quarter of what is was at the first location. Will overall labor cost be a quarter as well? Calculate!

a) Employ the skill circle model and calculate skill range, skill range and total labor cost per worker when there are 240 workers and unit training cost is $1260/h and the wage equals $80/h. Training cost is to be borne by the firm. b) Now assume the firm moves to a smaller location and the number of workers is only a quarter of what is was at the first location. Will overall labor cost be a quarter as well? Calculate!

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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