A One-Factor Economy a Denote with Pc the dollar price of cheese and with Pw the dollar price of wine. Denote with ww the dollar wage in the wine industry and with wr the dollar wage in the cheese industry. There are no profits in our one-factor model, the hourly wage rate in the cheese sector will equal the value of what a worker can produce in an hour, Pc/aLc. The hourly wage rate in the wine sector will be Pw/alw Copyright C 2003 Pearson Education, Inc Slide 1-15Copyright © 2003 Pearson Education, Inc. Slide 1-15 ▪ Denote with PC the dollar price of cheese and with PW the dollar price of wine. Denote with wW the dollar wage in the wine industry and with wC the dollar wage in the cheese industry. ▪ There are no profits in our one-factor model,the hourly wage rate in the cheese sector will equal the value of what a worker can produce in an hour,PC/aLC.The hourly wage rate in the wine sector will be PW/aLW. A One-Factor Economy