ECON 1201 Lecture Notes - Lecture 18: Market Power, Human Capital
74
ECON 1201 Full Course Notes
Verified Note
74 documents
Document Summary
Wages higher in wealthier countries due to capital, education, and efficiency. Why do wages vary so much across countries: the level of capital invested per worker, differences in level of education, u. s. firms: global reach, better sales force, better infrastructure, u. s. firms produce a more valuable product. Human capital: tools of the minds that make people more productive. Wages for college educated workers double those with high school degree. Compensating differentials: a difference in wages that offsets differences in working conditions. Monopoly: one producer, the exclusive possession or control of supply or trade in a good/service, considerable power over price, unique product, very high barriers to entry. Divergence from zero economic profit in long run.
