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Compensating Wage Differentials

Question 1 a)
Suppose we have two accounting firms that exist within a competitive market place (i.e. their profit levels are zero). Firm 1 has the total cost function of TC1 = W +4H while firm 2 has the cost function of TC2 = W + H/2 where W is the wage rate offered and H is the number of weekly hours employees can work from home (assume a maximum of 40 weekly hours). Both firms also have fixed revenue amounts (i.e. these amounts do not change), where firm 1’s revenue is 50 and firm 2’s revenue is 30. If firm 1 currently offers H = 5 and firm 2 offers H = 20 what is the wage rate offered by both firms (recall that profit is revenue minus cost)?
Question 1 b)
The government has set out a new policy that all accounting firms must allow their employees to work a minimum of 15 hours each week at home. Given the cost functions and fixed revenue amounts mentioned above (and continuing to assume that profit levels are zero), will either firm be able to implement this new regulation?

Sample Solution

restriction will be the accessibility of the objective exploration bunch, medical caretakers who have been working in various nursing homes and clinics of Missouri. The objective gathering will be attendants who have effectively finished their nursing programs and have been capable adapt up to hardships which happened during this program. As the members of the examination will be chosen from the accessible populace consequently, research instances of definitions will be given to the attendants to their accommodation. It is expected that all overview members will honestly validate that they are a piece of the objective section as characterized and fall inside the reach wanted as far as their effective fulfillment of nursing program for the examination study. Notwithstanding, some email locations might be problematic, and a few beneficiaries of the email greeting will be reluctant to partake. The proposed study is restricted by the accessible monetary assets to lead the exploration; in this manner, the outcomes will be summed up just to those answering the examination overview. Delimitation Nurses to be studied are available because of the scientist's broad organization of contacts in Missouri. The members have email accounts, which will give admittance to support in the poll. One more delimiting factor is the accessibility of the designated research gathering to partake in a web-based study. Research in the scholarly world is being moved from paper and pencil to online overviews. Welcoming populace portions to visit a site for the motivations behind finishing a poll is considerably more open and helpful for members, in this way giving the scientist more prominent admittance to members and a more significant level of support achievement. Considering that the populace to be reviewed for this examination has been the focal point of many investigations, the information gathered will give new bits of knowledge to decide the indicators of understudy outcome in nursing programs. eview of Literature Nursing Curricula in the United States Research on nursing educational plans in the United states had confirmed that the country's nursing deficiency was serious that momentum enlisted medical caretakers couldn't be viewed as a solid labor force asset later on, and that nursing curricular substance should have been addressed to meet medical care necessities by Year 2020. Accessible information proposed that simply 25% to half of the attendants who moved on from nursing schools would go on in their vocations following five years in the calling. Notwithstanding the anticipated lack of around 800,000 medical caretakers, or 29%, by 2020, a Health Affairs report in 2007 anticipated the deficiency of attendants to be 340,000 by 2020. The modified report actually showed that the projected nursing lack would be multiple times bigger than the size of the deficiency when it was at its top in 2001. Staff deficiencies joined with a lacking stock of new medical attendants with the certifications to show in scholarly settings have prompted expectations of more noteworthy deficiencies. Confidential area enlistment from the generally restricted pool of qualified employees further convoluted the issue. The need to recognize
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