Qualification > Commerce
ALL ECONOMICS DISCUSSION, PAPERS HELP HERE!!
elemis:
No love people ! T_T :'(
J.Darren:
--- Quote from: Ari Ben Canaan on June 07, 2010, 02:12:06 pm ---In the pastpapers I keep seeing stuff regarding the elasticity of the labour supply.
Could someone please explain this concept along with the usual factors that affect this elasticity ?
+rep for the first person who does the BEST job ;)
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The elasticity of supply of labour in low-income occupational groups tends to be elastic as a pool of readily available workers is available at low wage rates. The elasticity of supply of labour in jobs that require lengthy training and specific skills tend to be inelastic, meaning it is hard to expand the workforce as the demand for workers increases. This also explains why some professions, such as Law and Accountancy, enjoys a high wage level in short term as the high level qualifications makes the supply of newly qualified entrants to these occuptations inelastic, the expertise required for entry to those occupations is often know as an artificial barries to the entry of workers.
rhea:
--- Quote from: J.Darren on June 07, 2010, 05:24:00 pm ---The elasticity of supply of labour in low-income occupational groups tends to be elastic as a pool of readily available workers is available at low wage rates. The elasticity of supply of labour in jobs that require lengthy training and specific skills tend to be inelastic, meaning it is hard to expand the workforce as the demand for workers increases. This also explains why some professions, such as Law and Accountancy, enjoys a high wage level in short term as the high level qualifications makes the supply of newly qualified entrants to these occuptations inelastic, the expertise required for entry to those occupations is often know as an artificial barries to the entry of workers.
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you are giving your boards this year right?
damn, u know a lot! ;) ;)
rhea:
whats profit maximization?
4 mark ans plz!
J.Darren:
--- Quote from: rhea on June 07, 2010, 05:54:31 pm ---whats profit maximization?
4 mark ans plz!
--- End quote ---
Total Revenue - Total Cost = Total Profit
Revenue maximisation :
- Manipulation of Price elasticity of demand, if the PEd is inelastic, increase the price, if the PEd is elastic, decrease the price.
Price elasticity of demand is definied as the responsivness in quantity demanded to a change in the price of goods and services.
PEd = % Change in quantity demanded / % Change in price.
Cost minimisation
- Employing cheaper and more efficent factors of production (can be either labour intensive of capital intensive).
- Only increase output when marginal cost is less than marginal revenue of the last unit. When marginal cost equals to marginal revenue, profit is maximised.
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