tailieunhanh - Lecture Principles of economics - Chapter 6: The markets for the factors of production

In this chapter you will analyze the labor demand of competitive, profitmaximizing firms, consider the household decisions that lie behind labor supply, learn why equilibrium wages equal the value of the marginal product of labor, consider how the other factors of production land and capital are compensated, examine how a change in the supply of one factor alters the earnings of all the factors. | 6 THE ECONOMICS OF LABOR MARKETS 18 The Markets for the Factors of Production The Markets for the Factors of Production Factors of production are the inputs used to produce goods and services. The Market for the Factors of Production The demand for a factor of production is a derived demand. A firm’s demand for a factor of production is derived from its decision to supply a good in another market. THE DEMAND FOR LABOR Labor markets, like other markets in the economy, are governed by the forces of supply and demand. Figure 1 The Versatility of Supply and Demand Copyright©2003 Southwestern/Thomson Learning Quantity of Apples 0 Price of Apples Demand Supply Demand Supply Quantity of Apple Pickers 0 Wage of Apple Pickers (a) The Market for Apples (b) The Market for Apple Pickers P Q L W THE DEMAND FOR LABOR Most labor services, rather than being final goods ready to be enjoyed by consumers, are inputs into the production of other goods. The Production Function and the Marginal Product of | 6 THE ECONOMICS OF LABOR MARKETS 18 The Markets for the Factors of Production The Markets for the Factors of Production Factors of production are the inputs used to produce goods and services. The Market for the Factors of Production The demand for a factor of production is a derived demand. A firm’s demand for a factor of production is derived from its decision to supply a good in another market. THE DEMAND FOR LABOR Labor markets, like other markets in the economy, are governed by the forces of supply and demand. Figure 1 The Versatility of Supply and Demand Copyright©2003 Southwestern/Thomson Learning Quantity of Apples 0 Price of Apples Demand Supply Demand Supply Quantity of Apple Pickers 0 Wage of Apple Pickers (a) The Market for Apples (b) The Market for Apple Pickers P Q L W THE DEMAND FOR LABOR Most labor services, rather than being final goods ready to be enjoyed by consumers, are inputs into the production of other goods. The Production Function and the Marginal Product of Labor The production function illustrates the relationship between the quantity of inputs used and the quantity of output of a good. Table 1 How the Competitive Firm Decides How Much Labor to Hire Copyright©2004 South-Western Figure 2 The Production Function Copyright©2003 Southwestern/Thomson Learning Production function Quantity of Apple Pickers 0 Quantity of Apples 300 280 240 180 100 1 2 3 4 5 The Production Function and the Marginal Product of Labor The marginal product of labor is the increase in the amount of output from an additional unit of labor. MPL = Q/ L MPL = (Q2 – Q1)/(L2 – L1) The Production Function and the Marginal Product of Labor Diminishing Marginal Product of Labor As the number of workers increases, the marginal product of labor declines. As more and more workers are hired, each additional worker contributes less to production than the prior one. The production function becomes flatter as the number of workers rises. This property is called diminishing marginal

• Kinh tế học
• Principles of economics
• Lecture Principles of economics
• Factors of production
• Demand for labor
• Production function
• Marginal product of labor
• Ten principles of economics
• People face tradeoffs
• Opportunity cost
• Marginal changes
• Economics of information
• Consumer choice
• Free rider problem
• Market transactions
• Welfare Economics
• Consumer surplus
• Demand curve
• Efficiency of markets
• Nature of an externality
• Market inefficiency
• Negative externalities
• Principles of microeconomics
• Lecture Principles of microeconomics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Principles of agricultural economics
• Agricultural economics
• Economics of agricultural production
• Theory of consumer behaviour
• Economics of market demand
• Dynamics in demand analysis
• Analysis of agricultural markets
• Agricultural markets
• Economics of trade
• Costs of taxation
• Deadweight loss
• Laffer curve
• Supply side economics
• Market forces
• Supply and demand
• Market economies
• Competitive Markets
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier
• The gains from trade
• Production possibilities
• Comparative advantage
• Absolute advantage
• Costs of production
• Total revenue
• Total cost
• Opportunity costs
• Price elasticity of demand
• Price elasticity
• Midpoint method
• Demand curves
• Controls on prices
• Price ceiling
• Price floor
• Market outcomes
• Theory of consumer choice
• Budget constraint
• Indifference curve
• Marginal rate of substitution
• Measuring nation’s income
• Economy’s income
• Gross domestic product
• Components of GDP
• International trade
• Determinants of trade
• Equilibrium without trade
• Production and growth
• Economic growth
• Monetary system
• Functions of money
• Federal reserve
• Central bank
• Open economy macroeconomics
• Economy macroeconomics
• Closed economy
• Open economy
• Public goods
• Common resource
• Types of goods
• Cost benefit analysis
• Aggregate demand
• Aggregate supply
• Short run economic fluctuations
• Economic fluctuations
• Tax system
• Federal Government
• Marginal tax rate
• Budget surplus
• Macroeconomic policy
• Debate over macroeconomic policy
• Stabilize the economy
• Monetary policy