A Purely Competitive Labor Market. Purely Competitve Labor Market What determines the wage rate paid for a specific type of labor? Labor Demand and Labor.

Slides:

Advertisements

Similar presentations

Factor Markets Unit IV.

Advertisements

Unit 4 Section 13 Factor Markets.

The Market for Labor Module KRUGMAN'S MICROECONOMICS for AP* 35 71

Mr. Bernstein Module 71: The Market for Labor December 18, 2014

1 Chap 3: Productivity, Output, and Employment Focus : The Labor Market What factors determine real wage and the employment level? How equilibrium is achieved.

1 Monopsony Monopsony is a situation where there is one buyer – you have seen Monopoly, a case of one seller. Here we want to explore the impact on the.

AP Economics December 8, Review Unit 3 Exam: Theory of the Firm 2.Begin Unit 4: Factor Markets 3.Unit 4 Exam NEW DATE: Monday, December 22 and Tuesday,

Introduction to Labor Markets Chapter 3: Short-run labor demand.

The Market for Labor.

Agenda Collect HW Review/Overview Unions and Minimum Wage Stocks Research Reporting Former Students HW.

Chapter 26-Wage Determination Presentation 1. Labor Broadly defined as: 1. Blue and white collar workers 2. Professionals- doctors, lawyers 3. Owners.

The Firm in PC Labor Markets. Objective(s) 3. Students should be able to explain why a firm hires labor until MFC=MRPL and identify this point on a cost.

Factor Markets Chapter 18.

Ch 28 Wage Determination Most important price you will encounter in your lifetime will be your hourly wage rate It is critical to determining your economic.

PART FOUR Resource Markets

Significance of Resource Pricing Marginal Productivity Theory of Resource Demand MRP as a Demand Schedule Determinants of Resource Demand Elasticity.

Non- Labor Costs Labor Costs PURELY COMPETITIVE LABOR MARKET EQUILIBRIUM Labor Market S D = MRP WcWc (1000) Individual Firm S = MRC d = mrp WcWc Quantity.

Chapter 11Copyright ©2009 by South-Western, a division of Cengage Learning. All rights reserved 1 ECON Designed by Amy McGuire, B-books, Ltd. McEachern.

The Labor Market © 2003 South-Western/Thomson Learning.

Marginal Productivity Theory. Marginal Physical Product Extra Output from each additional unit of resource.

KRUGMAN'S MICROECONOMICS for AP* The Market for Labor Margaret Ray and David Anderson Micro: Econ: Module.

Monopsony, Unions, & Bilateral Monopoly Labor Markets

LABOR DEMAND PROBLEM – How does an employer decide how many people to hire?

Presentation 1 The Demand for Resources. Derived Demand Demand that is derived from the products that the resource helps produce Resources don’t usually.

KRUGMAN'S MICROECONOMICS for AP* The Market for Labor Margaret Ray and David Anderson Micro: Econ: Module.

Ch. 8 Continued: Women’s Earnings--Overview Labor Market: –Shows supply and demand for labor; –Results in equilibrium wage rate and employment level. –Assume.

Economic Concepts. Ch 12-Demand For Resources Derived Demand-from the products that resources produce. Marginal Revenue Product(MRP)-change in tl revenue.

Factors of Production Part II (Chapter 18). MRP sometimes call Value of Marginal Product ( VMP ) MRP If MB ≥ MC do it If MB < MC don’t Economic Decision.

Chapter 11 Resource Markets © 2009 South-Western/ Cengage Learning.

Labor Markets Supply and Demand Wages  Wage = Price of labor including fringe benefits  Real wage = adjustment for inflation.

Unit 3: The Resource Market (aka: The Factor Market or Input Market) 1.

Factor Markets Unit IV. Basic concepts Similar to those of: – supply and demand –And product markets –Same concepts with new application.

help/article/ap-microeconomics- practice-exam-1/ help/article/ap-microeconomics- practice-exam-2/

Labor Markets Derived Demand for Workers Chapter 16.

Relative income: why? $5 million $30,000 What determines a person’s income? SUPPLY of and DEMAND for their HUMAN CAPITAL.

Factor Markets Labor. Product market  In the product market, firms supply goods  Households demand those goods.

McGraw-Hill/Irwin Chapter 10: Wage Determination Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

1995 Microeconomics Question 1.

Chapter 18 The markets for the factors of production.

The other side of the circular flow model

Warm-Up P=$10; W=$100 What is the MRP of the 2nd unit?

Wage Determination and the Allocation of Labor

Labor, Wages, and Earnings

AP MICROECONOMICS UNIT #6 FACTOR MARKETS

Competitive Factor Market

Derivation of labor demand in a competitive product and labor market

12a – The Demand for Resources (Labor)

Markets for Factors of Production

Chapter 17 Appendix DERIVED DEMAND.

Unit 5: The Resource Market

Microeconomics Question #2.

Competitive Labor Markets

Demand for Factors of Production

Unit V: Factor Market ***Factors = Resources = Inputs***

The Markets for the Factors of Production

12a – The Demand for Resources (Labor)

Wage Determination and the Allocation of Labor

Factor Markets Unit VII.

Unit 5: The Resource Market

Chapter 18: The Market for Inputs

Competitive vs. Market Power Firms in the Factor Market

Competitive Labor Markets

THE ECONOMICS OF LABOUR MARKETS

Unit 5: The Resource Market

Determining Wages Chapter 15 4/7/2019.

Firms in Competitive Markets

(aka: The Factor/Input/Labor Market)

Presentation transcript:

A Purely Competitive Labor Market

Purely Competitve Labor Market What determines the wage rate paid for a specific type of labor? Labor Demand and Labor Supply – Characteristics of this market: – Nurmerous firms compete – Many qualified workers with identical skills – “wage takers”

Demand for Labor

Supply of Labor

Shifts of the Labor Supply Curve A change in any factor OTHER THAN THE WAGE that alters workers’ willingness to supply labor causes a shift of the labor supply curve. Factors that can lead to shifts: Change in preferences and social norms Changes in population Changes in opprotunities Changes in wealth

Labor Market Equlibrium Where is it found? – Intersection of the market labor demand curve and the market labor supply curve Each firm will maximize its profits by hiring up to the point of MRP = MRC