The labor supply function is given by N = 1000 + 12w and labor demand is N = 2000 – 8w. Find the equilibrium level of employment and wage. b. Given existing technology and the capital stock, output is given by the function Y = 100N. Does the function exhibit diminishing marginal product of labor? c. Using the labor market from part (a) and the production function from part (b), determine the equilibrium level of output for this economy.
The labor supply function is given by N = 1000 + 12w and labor demand is N = 2000 – 8w. Find the equilibrium level of employment and wage.
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