Compare level of consumer surplus enjoyed by workers
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If you were President of the US and you were making decisions on trading, would you rather have a comparative or absolute advantage in trading?
Cruise Division of Harold's Company's operating results include: controllable margin, $200,000; sales $2,200,000; and operating assets, $800,000. The Cruise Division's current ROI is 25%, the minimum rate or return the company is seeking.
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Compare the level of consumer surplus enjoyed by these three workers. Which worker(s) enjoys the most surplus?
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What is the employment effect at firm A? How has total worker income changed? What is the employment effect at firm B? How has total worker income changed?
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