Then how many workers are employed in the modern sector?

In the modern sector where the production decisions are guided by profit motive the real wage rate Show more In the modern sector where the production decisions are guided by profit motive the real wage rate measured in the quantity of food is 2 kilograms per worker. Then how many workers are employed in the modern sector? Recognize the area in the graph which represents profit in the modern sector that can be invested to raise labor productivity. If this profit is invested to increase production in the modern sector more workers will be needed. But is that not going to raise the real wage in the modern sector? If you think that a real wage of 2 kg of food will not increase explain why you think so. Show less

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