复旦国际贸易英文课件02.pptVIP

Ricardian Model Opportunity Cost and Prices The slope of the PPF reflects the opportunity of producing one more bushel of wheat. Under perfect competition the opportunity cost of wheat should equal the price of wheat. Price reflects the opportunity cost of a good. Ricardian Model Wages Determination of wages In competitive markets firms hire workers up to the point at which the hourly wage equals the value of one more hour of production. wage = P*MPL for each industry. In competitive markets, labor can move freely between industries. Wages must be equal across industries. If the wages were