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I’m working on a macro economics question and need an explanation to help me understand better.(Un)competitive markets. Point B in the figure below shows the levels of employment and the real wage when there is imperfect competition in goods’ and labour markets.(a) At what point would the equilibrium be if there was perfect competition in the product market but the labour market was still characterised by turnover costs and efficiency wages?
(b) At what point would the equilibrium be if there was imperfect competition in the product market and perfect competition in the labour market?
Requirements: As long as its good enough to understand .   |   .doc file


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