In a simplified economy with 10 identical firms and a total workforce of 80 people, suppose that 60 people are employed. Each employed person produces 1 unit of output and receives a real wage of 0.7 units of output. The owners of the firms receive the remaining output as profit. What is the share of total output received by the entire worker group (both employed and unemployed)?
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In a simplified economy with 10 identical firms and a total workforce of 80 people, suppose that 60 people are employed. Each employed person produces 1 unit of output and receives a real wage of 0.7 units of output. The owners of the firms receive the remaining output as profit. What is the share of total output received by the entire worker group (both employed and unemployed)?
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