Re: isi 2012 ME II

Posted by ritu on
URL: http://discussion-forum.276.s1.nabble.com/isi-2012-ME-II-tp7354815p7355518.html

hi vasudha....some days back u asked abt question 15.....i m nt sure if its correct....but do tell me hw u feel abt it...
plotting the given values  we get one variable production functions for both food and manufacturing....then for labor to get settled nd  to deprive them off the incentive to shift btwn the food and manufacturing sector,there wages should be equalised(which wud be = value of their marginal products)using....
1.  Wf=Wm  &
2. Lm+Lf=100


i got Lf=57.6 & Lm=42.35.....its strange that i got decimal values....so we can round them off nd finally get......
Lm=42,Lf=58.....


i did not take into account the land and capital costs coz we were not given info abt their hiring prices....nd its given that they are fully employed....pls tell me....is it the wrong way to solve it??