theeconomicsoflabormarkets(编辑修改稿)

theeconomicsoflabormarkets(编辑修改稿)内容摘要：

determined by supply and demand. The firm increases the quantity hired until the value of the factor’s marginal product equals the factor’s price. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. The Markets for Land and Capital... Quantity of Land Quantity of Capital Q Q P P 0 0 Rental Price of Land Rental Price of Capital Demand Demand Supply Supply (a) The Market for Land (b) The Market for Capital Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Equilibrium in Markets for Land and Capital Each factor’s rental price must equal the value of their marginal product. They each earn the value of their marginal contribution to the production process. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Linkages Among the Factors of Production Factors of production are used together. The marginal product of any one factor depends on the quantities of all factors that are available. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Linkages Among the Factors of Production A change in the supply of one factor alters the earnings of all the factors. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Linkages Among the Factors of Production A change in earnings of any factor can be found by analyzing the impact of the event on the value of the marginal product of that factor. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Summary The three most important factors of production are labor, land, and capital. The demand for factors, such as labor, is a derived demand that es from firms that use the factors to produce goods and services. Competitive, profitmaximizing firms hire each factor up to the point at which the value of the marginal product of the factor equals its price. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Summary The supply of labor arises from individuals’ tradeoff between work and leisure. An upwardsloping labor supply curve means that people respond to an increase in the wage by enjoying less leisure and working more hours. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Summary The price paid to each factor adjusts to balance the supply and demand for that factor. Because factor demand reflects the value of the marginal product of that factor, in equilibrium each factor is pensated according to its marginal contribution to the production of goods and services. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Summary Because factors of production are used together, the marginal product of any one factor depends on the quantities of all factors that are available. As a result, a change in the supply of one factor alters the equilibrium earnings of all the factors. Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Graphical Review Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. The Versatility of Supply and Demand... (a) The Market for Apples (b) The Market for Apple Pickers Quantity of Apples Quantity of Apple Pickers Q L P W 0 0 Price of Apples Wage of Apple Pickers Demand Demand Supply Supply Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. The Production Function... 0 0 50 100 150 200 250 300 350 0 1 2 3 4 5 6 Quantity of Apple Pickers Quantity of Apples 1 2 3 4 5 Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. The Value of the Marginal Product of Labor... 0 Quantity of Apple Pickers Value of the Marginal Product Value of marginal product (demand curve for labor) Market wage Profitmaximizing quantity Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. The Labor Supply Curve Supply Wage (price of labor) Quantity of Labor 0 Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. Equilibrium in the Labor Market... Equilibrium employment, L Supply Wage (price of labor) Quantity of Labor 0 Demand Equilibrium wage, W Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. A Shift in Labor Supply... Wage (price of labor) W1 0 Quantity of Labor L1 Supply, S1 Demand 2. ...reduces the wage... 3. ...and raises employment. 1. An increase in labor supply... S2 W2 L2 Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. A Shift in Labor Demand... Wage (price of labor) W1 0 Quantity of Labor L1 Supply Demand, D1 2. ...increases the wage... 3. ...and increases employment. 1. An increase in labor demand... D2 W2 L2 Harcourt, Inc. items and derived items copyright 169。 2020 by Harcourt, Inc. The Markets for Land and Capital... Quantity of Land Quantity of Capital Q Q P P 0 0 Rental Price of Land Rental Price of C。