Question

City A 0 1 1/3 2/3 City B 0 1 0.15 0.3 0.7 0.85 Question 4 (a) In the explanation of labor matching models, I assumed without explanation that firms will always hire two adjacent workers. Why does this make sense? Explain briefly. [Draw out a line with three workers. Why wouldn't the firm want to hire the two workers who are non-adjacent?] (b) A firm is more likely to find closely matching workers in a big city. What about cities with the same sized labor force but different skill distributions? Look at City A and City B in the figure. If firms have to train two workers, and training costs are equal to the distance between the worker and the firm, which city will a firm prefer to locate in?

Question 4 (a) In the explanation of labor matching models, I assumed without explanation that firms will always hire two adjacent workers. Why does this make sense? Explain briefly. [Draw out a line with three workers. Why wouldn’t the firm want to hire the two workers who are non-adjacent?]

(b) A firm is more likely to find closely matching workers in a big city. What about cities with the same sized labor force but different skill distributions? Look at City A and City B in the figure. If firms have to train two workers, and training costs are equal to the distance between the worker and the firm, which city will a firm prefer to locate in?

Answer 1

As per the concept of Ansiu ca labour Madching ascumphens, from will hise ho adjacent workere , because each worker has a unique Skill derived by a position or address on a circle as per the circumstances. He has unique experience, talent and the teenniques of doing woogle. kihen a from hise two adjacent workers will be beneficial when one of them remain on leave the other worker can do the work as usual, and the work of a firm will not be stopped, due to absent of a worker B Workers both of them. are suppose, A and B ase non adjacent wasteese and both of them has different different abilities and have different scopes or fields different of Machines For example! A is the worker of available in Dept A and B is the persons Worker who starts the generator for the from When the electicity cut so at the absenteism any ofhem will stop their department's whole