第14章要素投入品市场.pptxVIP

Chapter 14Markets for Factor InputsTopics to be DiscussedCompetitive Factor MarketsEquilibrium in a Competitive Factor MarketFactor Markets with Monopsony PowerFactor Markets with Monopoly PowerChapter 14Slide Competitive Factor MarketsCharacteristics 1) Large number of sellers of the factor of production 2) Large number of buyers of the factor of production 3) The buyers and sellers of the factor of production are price takersChapter 14Slide Competitive Factor MarketsDemand for a Factor Input When Only One Input Is VariableDemand for factor inputs is a derived demand…derived from factor cost and output demandChapter 14Slide Competitive Factor MarketsDemand for a Factor Input WhenOnly One Input Is VariableAssumeTwo inputs: Capital (K) and Labor (L)Cost of K is r and the cost of labor is wK is fixed and L is variableChapter 14Slide Competitive Factor MarketsDemand for a Factor Input WhenOnly One Input Is VariableProblemHow much labor to hireChapter 14Slide Competitive Factor MarketsDemand for a Factor Input WhenOnly One Input Is VariableMeasuring the Value of a Worker’s OutputMarginal Revenue Product of Labor (MRPL)MRPL = (MPL)(MR)Chapter 14Slide Competitive Factor MarketsDemand for a Factor Input WhenOnly One Input Is VariableAssume perfect competition in the product marketThen MR = PChapter 14Slide Competitive Factor MarketsDemand for a Factor Input WhenOnly One Input Is VariableQuestionWhat will happen to the value of MRPL when more workers are hired?Chapter 14Slide Competitive Output Market (P = MR)MRPL = MPLx PMonopolistic Output Market(P MR)MRPL = MPL x MRMarginal Revenue ProductWages($ perhour)Hours of WorkChapter 14Slide Competitive Factor MarketsDemand for a Factor Input WhenOnly One Input Is VariableChoosing the profit-maximizing amount of laborIf MRPL w (the marginal cost of hiring a worker): hire the workerIf MRPL w: hire less laborIf MRPL = w: profit maximizing amount of laborChapter 14Slide In a competitive labor market, a firm faces a perfectly e