TOPICS
- Finding the Resource
Demand Curve
- Determinants of Resource Demand
- Elasticity of Resource Demand
- The Profit Maximizing Quantity to Hire:
MRP = MRC
(MB = MC)
- The Allocatively Efficient
Quantity to Hire:
VMP = W
(MSB = MSC)
- The First Two Labor Market
Models:
Competitive labor
market in a competitive product market
Competitive labor market in an
imperfecly comp. prod. market
OUTCOMES
Why is resource demand a
"derived demand?
List the three determinants of
demand for a resource and explain how a change in each of
the determinants would affect the demand for the
resource.
List three determinants of the
price elasticity of demand for a resource, and state how
changes in each would affect the elasticity of demand for
a resource.
Describe a competitive labor
market
Define and calculate the
marginal-revenue-product (MRP). Explain why the MRP
schedule of a resource is the firm's demand schedule for
the resource in a purely competitive product
market. Explain why the
resource demand curve is downward sloping. DEFINE, DRAW,
DESCRIBE.
For a competitive labor market use
benefit-cost analysis (the MRP = MRC principle) to
find the profit maximizing quantity of labor a
firm will employ in a purely competitive product market
and in an imperfectly competitive product market when
given the data and graph.
For a competitive labor market use
benefit-cost analysis (VMP = W) to find the
allocatively efficient quantity of labor for a firm
to employ in a purely competitive product market and in
an imperfectly competitive product market when given the
data and graph.
|
