MicroeconomicMARKETSFORFACTORSOFPRODUCTION文件材料.ppt

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * To view a full-screen figure during a class, click the red “expand” button. To return to the previous slide, click the red “shrink” button. To advance to the next slide, click anywhere on the full screen figure. * * * * * * * * * * * * * * * * * * * * * * * What’s your reservation wage? Ask the students if they would be willing to work 40 hours each week at a wage rate of $20 per hour (which is about $40,000 per year). Next, ask them whether they would increase their labor supplied to 48 hours per week if they could earn $40 per hour (about $80,000 per year, if working 40 hours per week). Most students would be willing to work more hours per week at this wage rate. Then ask them how many hours per week they would work if they were paid $10,000 per hour. In this case, working only one day per week would garner them about $8 million per year, leaving the remaining six days of each week to enjoy their high income. Many would not be willing to continue working 48 hours a week, thereby creating a backward-bending supply of labor curve. * * * * * * Comparing competitive output markets with competitive input markets. Just as the perfectly competitive firm in the market for a good or service is a price taker in that market, so the individual household in a perfectly competitive factor market is a price taker. Also, the firm that buys the services of the factor of production is a price taker in a perfectly competitive factor market. Even in the market for land, which is in perfectly inelastic supply, the individual landowner faces a perfectly elastic demand for his or her land. * * * * * * * The idea that the marginal cost of labor is somehow different from the wage rate is often confusing for students. Be sure to go through the intuition and the math calculations for the marginal cost of labor several times. * * * * Examples of bilateral monopoly: Have the students consider the relationship between profession