Now that you have reviewed the concepts introduced in this c

Now that you have reviewed the concepts introduced in this chapter, it is time for some hands-on practice with the analytical tools that have been introduced. Work through each problem in this section carefully, and then check your results against those given at the end of the chapter. Problem 1 This problem is based on Figure 13.1, which shows marginal revenue product and supply curves for a monopsonistic employer. a. If the supply and marginal revenue product curves in Figure 13. la applied to a perfectly competitive labor market, what would be the equilibrium wage rate and the equilibrium quantity of labor employed? b. Instead, we assume that the employer is a monopsonist. On this assumption, fill in the blanks in Figure 13.1b. Using the completed table as your guide, draw in the monopsonist\'s marginal labor cost curve. What is the equilibrium quantity of labor employed by the monopsonist? The equilibrium wage rate? c. Does the position of the marginal labor cost curve in Figure 13.la suggest to you a shortcut method of drawing such a curve when the supply curve is a straight line? Can you prove that the shortcut method works? Figure 13.la $20 $15 Supply

Solution

Many African countries are putting behind them the conflict, stagnation, and dictatorships of the past. These countries are looking to decrease poverty, expand democracy, improve governance, and achieve a higher and steady economic growth. Choose one of these countries and in three to five pages explain the following: What are the current economic conditions and how are they a problem? What are the causes of the problem? Pay attention to the role that the absence of institutions played in forming these problems Propose solutions to help the country developing into a stable and growing economy. In other words, think about the types of good institutions that need to be established or improved and the types of bad institutions that need to be eliminated. Suggest governmental changes or policies that should be implemented to spur economic growth. Explain the mechanism in which these improvement will take place if the suggested institutions were built or bad institutions were eliminated.