Answer on Macroeconomics Question for ashwini
Let's the price of labor, i.e. the amount of money, necessary to pay for theuse of the employee for a certain time , be defined as rL, and the cost of capital - the amount of money paid for the use of the means of production for some time, - rK. Then the total cost to produce a certain number of products will be: TC = rL*L + rK*K.
Given prices of production factors the cost is determined by the value of the minimum required for output volumes of labor and capital, i.e. technology represented by a production function Q = Q (L, K). Therefore, L = L
(Q), K = K (Q), and consequently, TC = TC (Q).
The cost of production depends on many factors and these factors vary from one firm to another firm in the same industry or
from one industry to another industry. The main determinants of a cost function are:
a) plant size
b) output level
c) prices of inputs used in production,
d) nature of technology
e) managerial efficiency
It costs NIKE $5 to make a pair of sneakers...
NIKE shoe production in the Third World: The facts:
-Indonesian workers make $2.46 a day
-10,000 Indonesians went on strike to protest wages that are below subsistence level.
-"If I don't work overtime, I can't survive," says Baltazar at PT Hasi Nike factory in Jakarta. He works an average of 40 overtime hours a week.
-Vietnamese workers make $l.60 a day
-1,300 workers at the Sam Yang factory went on strike to demand a one cent per hour raise in wages. Other issues include excessive and illegal overtime and compensation for working with hazardous material.
-Chinese workers make $1.75 a day
-There is no minimum wage in China and when abuses are discovered, the wholefactory disappears. "The supervisors will get nervous and move the work to another province. It's impossible to monitor factory conditions," says Asia Monitor Resource Center in Hong Kong.
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!
Dear ashwini. You're welcome. We are glad to be helpful. If you really liked our service please press like-button beside answer field. Thank you!
thanks a lot for the answer
the ans which u sent is not complete.. plz send me again the complete ans .. thanking u ashwini