平狄克微观经济学marketsforfactorinputs(编辑修改稿)

平狄克微观经济学marketsforfactorinputs(编辑修改稿)内容摘要：

Markets The Supply of Labor If the ine effect exceeds the substitution effect, the supply curve is backward bending By using utility and budget line graph, we can show how the supply curve can be backward bending  Can show how the ine effect can exceed the substitution effect 169。 2020 Pearson Education, Inc. 40 Substitution and Ine Effects of Wage Increase Worker initially chooses point A: •16 hours leisure, 8 hour work •Ine = $80 Q P w = $10 Ine ($ per day) 240 720 12 16 Hours of Leisure 0 8 24 19 Wage increases to $30. New budget line RQ. •19 hours leisure, 5 hours work •Ine = $150 Substitution effect Ine effect A B C w = $30 R Ine effect overrides substitution effect 169。 2020 Pearson Education, Inc. Chapter 14 41 Ine Effect Substitution Effect Ine Effect Substitution Effect BackwardBending Supply of Labor Hours of Work per Day Wage ($ per hour) Supply of Labor 169。 2020 Pearson Education, Inc. Chapter 14 42 Labor Supply for One and TwoEarner Households  In twentieth century, the percent of females in labor force has increased 1950 – 34% 2020 – 60%  Compared the work choices of 94 unmarried females with work decisions of heads of households and spouses in 397 families Can describe work decisions by calculating elasticity of supply for labor 169。 2020 Pearson Education, Inc. Chapter 14 43 Elasticities of Labor Supply (Hours Worked) 169。 2020 Pearson Education, Inc. Chapter 14 44 Labor Supply for One and TwoEarner Households When higher wage rate leads to fewer hours worked: Labor supply curve is backward bending Ine effect outweighs the substitution effect Elasticity of labor supply is negative 169。 2020 Pearson Education, Inc. Chapter 14 45 Equilibrium in a Competitive Factor Market Competitive factor market is in equilibrium when the prevailing price equates quantity supplied and quantity demanded Since workers are well informed, all receive the same wage and generate identical MRPL when employed 169。 2020 Pearson Education, Inc. Chapter 14 46 Equilibrium in a Competitive Factor Market If output market is perfectly petitive, demand curve for an input measures benefit consumers place on use of input in production process Wage rate also reflects the cost of the firm and to society of using additional unit of input At equilibrium, MBL = MCL = wage 169。 2020 Pearson Education, Inc. Chapter 14 47 Equilibrium in a Competitive Factor Market When output and input markets are both perfectly petitive, resources are used efficiently Maximize TB – TC Efficiency requires that MRPL equals the benefit to consumers of the additional output, given by (P)(MPL) 169。 2020 Pearson Education, Inc. Chapter 14 48 Equilibrium in a Competitive Factor Market If output market is not petitive: MRPL = (P)(MPL) no longer holds (P)(MPL) MRPL At equilibrium number of workers, marginal cost to firm, wM, is less than marginal benefit to consumers, vM Although the firm maximizes profits, output is below efficient level and uses less than efficient level of output 169。 2020 Pearson Education, Inc. Chapter 14 49 Equilibrium in a Competitive Factor Market If output market is not petitive: Although the firm maximizes profits, output is below efficient level and uses less than efficient level of input Economic efficiency would be increased if more laborers were hired and more output were produced Gains to consumers would outweigh firm’s lost profit 169。 2020 Pearson Education, Inc. Chapter 14 50 Labor Market Equilibrium SL = AE SL = AE DL = MRPL DL = MRPL P * MPL Number of Workers Number of Workers Wage Wage Competitive Output Market Monopolistic Output Market wC LC wM LM vM A B 169。 2020 Pearson Education, Inc. Chapter 14 51 Equilibrium in a Competitive Factor Market Economic Rent For a factor market, economic rent is the difference between the payments made to a factor of production and the minimum amount that must be spent to obtain the use of that factor The economic rent associated with the employment of labor is the excess of wages paid above the minimum amount needed to hire workers 169。 2020 Pearson Education, Inc. Chapter 14 52 Total expenditure (wage) paid is 0w* x 0L* Economic Rent Economic rent is ABW* B Economic Rent Number of Workers Wage SL = AE DL = MRPL w* L* A 0 169。 2020 Pearson Education, Inc. Chapter 14 53 Equilibrium in a Competitive Factor Market Land: A Perfectly Inelastic Supply Occurs when land for housing or agriculture is fixed, at least in short run Its price is determined entirely by demand When demand increases, rental value per unit increases and total land rent increases 169。 2020 Pearson Education, Inc. Chapter 14 54 Economic Rent s1 s2 Land Rent Number of Acres Price ($ per acre) Supply of Land D2 D1 When demand increases, price and economic rent increase. 169。 2020 Pearson Education, Inc. Chapter 14 55 Pay in the Military During the Civil War, 90% of the armed forces were unskilled workers involved in ground bat Today, only 16% are unskilled workers involved in ground bat Lead to severe shortages in skilled workers 169。 2020 Pearson Education, Inc. Chapter 14 56 Pay in the Military Rank structure has stayed the same Pay increases are determined primarily by years of service Similarly, officers with differing skill levels are often paid similar salaries Many skilled workers leave the army since salaries in private sector are much higher 169。 2020 Pearson Education, Inc. Chapter 14 57 The Shortage of Skilled Military Personnel Number of Skilled Workers Wage SL DL = MRPL w* w0 Shortage 169。 2020 Pearson Education, Inc. Chapter 14 58 Pay in the Military Solution。