Chapter 14-Markets for Factor Inputs课件.ppt

Chapter 14;Topics to be Discussed;Competitive Factor Markets;Competitive Factor Markets;Competitive Factor Markets;Competitive Factor Markets;Competitive Factor Markets;Competitive Factor Markets;Competitive Factor Markets;Marginal Revenue Product;Competitive Factor Markets;w*;Competitive Factor Markets;A Shift in the Supply of Labor;Competitive Factor Markets;Competitive Factor Markets;Competitive Factor Markets;Competitive Factor Markets;MRPL1;Assume that all firms respond to a lower wage All firms would hire more workers. Market supply would increase. The market price will fall. The quantity demanded for labor by the firm will be smaller.;MRPL1;The Industry Demand for Labor;The Demand for Jet Fuel;The Demand for Jet Fuel;The Demand for Jet Fuel;Short-run Price Elasticityof Demand for Jet Fuel;The Demand for Jet Fuel;The Short- and Long-RunDemand for Jet Fuel;Competitive Factor Markets;S;Competitive Factor Markets;Competitive Factor Markets;Competitive Factor Markets;Competitive Factor Markets;Income Effect Substitution Effect;12;Labor Supply for One- andTwo-Earner Households;Elasticities of Labor Supply (Hours Worked);Equilibrium in aCompetitive Factor Market;SL = AE;Labor Market Equilibrium;Labor Market Equilibrium;Economic Rent For a factor market, economic rent is the difference between the payments made to a factor of production and the minimum amount that must be spent to obtain the use of that factor.;Total expenditure (wage) paid is 0w* x AL*;Economic Rent;Land: A Perfectly Inelastic Supply With land inelastically supplied, its price is determined entirely by demand, at least in the short run.;Economic Rent;Pay in the Military;Pay in the Military;The Shortage ofSkilled Military Personnel;Pay in the Military;Pay in the Military;Factor Markets with Monopsony Power;SL = Average Expenditure (AE);Factor Markets with Monopsony Power;Monopsony Power inthe Market for Baseball Players;Baseball owners created a monopolistic cartel 1975 salaries were