Microeconomics
2nd Edition
ISBN: 9780073375854
Author: B. Douglas Bernheim, Michael Whinston
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 2, Problem 3DQ
To determine
Factors responsible for high salaries for an Economics professor compared to an English professor.
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Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest (Explain with diagram)
A supply curve of work hours can be backward-bending beyond some wage rate.
Examples of backward-bending labor supply curves exist in academics and professional athletics. Once university (or college) professors attain tenure, their productivity (in some cases) tends to decline. The diminished productivity appears to reflect fewer hours being devoted to research. Michael Jordan (who was making over $40 million per year in salary and endorsements) quit professional basketball in 1993 to spend more time with his family, play golf, and try out for a major league baseball team.
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Thank you for the first answer. Could you write an introduction and conclusion. I am lost and don't know how to write them.
The price of raw sugar reached its highest level since 1981 due to problems with supply.
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Growing demand in Brazil for sugar to be turned into ethanol for fuel, coupled with a sharp fall in Indian production have both been factors in the price increase. Sugar production in India for 2008-09 fell 45% year-on-year due to less rain in the monsoon season damaging a number of agricultural crops.
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Chapter 2 Solutions
Microeconomics
Ch. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6P
Ch. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Suppose the demand function for jelly beans in...Ch. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Suppose the annual demand function for the Honda...Ch. 2 - Prob. 13PCh. 2 - The demand function for a product is Qd = 100 ...Ch. 2 - Prob. 2CPCh. 2 - Prob. 3CPCh. 2 - Prob. 4CPCh. 2 - Suppose that the demand function for jelly beans...
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