Re: price setting and wage setting

Posted by AJ on Jun 17, 2012; 2:47pm
URL: http://discussion-forum.276.s1.nabble.com/price-setting-and-wage-setting-tp7577966p7578001.html

@vasudha..

"if u r assuming that there is a positive markup" .... Don't we always have a positive markup.. how does this means giving up competitive setup..??? I mean we are not taking a positive markup over marginal cost. we are just taking a positive markup over wages.

I am really confused right now...!!!!

And, while calculating real wage, u just took +ve markup, right?

And, why MPL is not equal to real wage?? if it's more than real wage, why don't we employ more labour??