enter image description here

Why are gk and c located where they are on this production schedule graph? How can consumption per worker be higher than the wage rate? Can you explain the position of c and gk in this production schedule graph? c = consumption/worker, gk=growth of capital stock, x =output/worker, v=profit. Furthermore, how can c be higher than w (the wage?)



Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge that you have read and understand our privacy policy and code of conduct.

Browse other questions tagged or ask your own question.