question archive Consider an economy with the following Cobb-Douglas production function Y = K3L3
Consider an economy with the following Cobb-Douglas production function Y = K3L3
Subject:SociologyPrice: Bought3
Consider an economy with the following Cobb-Douglas production function Y = K3L3. a The economy has 1,000 units of capital and a labor force of 1,000 workers. Suppose that Congress, concerned about the welfare of the working class, passes a law requiring firms to pay workers a real wage of one unit of output. a a) Will Congress succeed in its goal of helping the working class? Explain. b) Do you think that this analysis provides a good way of thinking about a minimum wage a law? Why or why not? won wwwmd
