Re: price setting and wage setting

Posted by anon_econ on Jun 17, 2012; 2:37pm
URL: http://discussion-forum.276.s1.nabble.com/price-setting-and-wage-setting-tp7577966p7577995.html

MPL is not equal to real wage. if u r assuming that there is a positive markup then u r giving up the assumption of a competitive setup. in fact MPL=1 and real wage=1/(1+mu)<1.