第14章 Markets for factor Inputs.ppt

2 of 35 ? 2008 Prentice Hall Business Publishing ? Microeconomics ? Robert S. Pindyck, 8e. Chapter 14: Markets for Factor Inputs * of 29 Copyright ? 2009 Pearson Education, Inc. Publishing as Prentice Hall ? Microeconomics ? Pindyck/Rubinfeld, 8e. Fernando Yvonn Quijano Prepared by: Markets for Factor Inputs 14 C H A P T E R Copyright ? 2009 Pearson Education, Inc. Publishing as Prentice Hall ? Microeconomics ? Pindyck/Rubinfeld, 8e. CHAPTER 14 OUTLINE 14.1 Competitive Factor Markets 14.2 Equilibrium in a Competitive Factor Market 14.3 Factor Markets with Monopsony Power 14.4 Factor Markets with Monopoly Power MARKETS FOR FACTOR INPUTS We will examine three different factor market structures: 1. Perfectly competitive factor markets; 2. Markets in which buyers of factors have monopsony power; 3. Markets in which sellers of factors have monopoly power. COMPETITIVE FACTOR MARKETS 14.1 Demand for a Factor Input When Only One Input Is Variable ● marginal revenue product Additional revenue resulting from the sale of output created by the use of one additional unit of an input. How do we measure the MRPL? It’s the additional output obtained from the additional unit of this labor, multiplied by the additional revenue from an extra unit of output. ● derived demand Demand for an input that depends on, and is derived from, both the firm’s level of output and the cost of inputs. (14.1) This important result holds for any competitive factor market, whether or not the output market is competitive. COMPETITIVE FACTOR MARKETS 14.1 Demand for a Factor Input When Only One Input Is Variable In a competitive output market, a firm will sell all its output at the market price P. In this case, the marginal revenue product of labor is equal to the marginal product of labor times the price of the product: (14.2) Marginal Revenue Product Figure 14.1 In a competitive factor market in which the producer is a price taker, the buyer’s demand for an input is given by