1. Chapter 15 Factor Markets and Vertical Integration

2. © 2004 Pearson Addison-Wesley. All rights reserved15-2 Table 15.1 Marginal Product of Labor, Marginal Revenue Product of Labor, and Marginal Cost

3. © 2004 Pearson Addison-Wesley. All rights reserved15-3 Figure 15.1 The Relationship Between Labor Market and Output Market Equilibria

4. © 2004 Pearson Addison-Wesley. All rights reserved15-4 Figure 15.1a The Relationship Between Labor Market and Output Market Equilibria

5. © 2004 Pearson Addison-Wesley. All rights reserved15-5 Figure 15.1b The Relationship Between Labor Market and Output Market Equilibria

6. © 2004 Pearson Addison-Wesley. All rights reserved15-6 Figure 15.2 Shift of and Movement Along the Labor Demand Curve

7. © 2004 Pearson Addison-Wesley. All rights reserved15-7 Figure 15.3 Labor Demand of a Thread Mill

8. © 2004 Pearson Addison-Wesley. All rights reserved15-8 Figure 15.4 Market Demand for Labor

9. © 2004 Pearson Addison-Wesley. All rights reserved15-9 Figure 15.4a Market Demand for Labor

10. © 2004 Pearson Addison-Wesley. All rights reserved15-10 Figure 15.4b Market Demand for Labor

11. © 2004 Pearson Addison-Wesley. All rights reserved15-11 Figure 15.5 Demand for Microchips in Calculators

12. © 2004 Pearson Addison-Wesley. All rights reserved15-12 Figure 15.6 How Labor Demand Varies with Market Structure

13. © 2004 Pearson Addison-Wesley. All rights reserved15-13 Figure 15.7 Effects of Output Market Structure on Labor Market Equilibrium

14. © 2004 Pearson Addison-Wesley. All rights reserved15-14 Application (Page 533) Union Monopoly Power

15. © 2004 Pearson Addison-Wesley. All rights reserved15-15 Figure 15.8 Double Monopoly Markup

16. © 2004 Pearson Addison-Wesley. All rights reserved15-16 Figure 15.9 Monopsony

17. © 2004 Pearson Addison-Wesley. All rights reserved15-17 Figure 15.9a Monopsony

18. © 2004 Pearson Addison-Wesley. All rights reserved15-18 Figure 15.9b Monopsony

19. © 2004 Pearson Addison-Wesley. All rights reserved15-19 Figure 15.10 Welfare Effects of Monopsony

20. © 2004 Pearson Addison-Wesley. All rights reserved15-20 Page 541 Solved Problem 15.3

21. © 2004 Pearson Addison-Wesley. All rights reserved15-21 Table 15.2 Cost of an Organ Transplant

22. © 2004 Pearson Addison-Wesley. All rights reserved15-22 Figure 15.11 Vertical Organization