微观经济学英文-ch18-presentation.ppt

The Markets for the Factors of Production 18 In this chapter, look for the answers to these questions: What determines a competitive firm’s demand for labor? How does labor supply depend on the wage? What other factors affect labor supply? How do various events affect the equilibrium wage and employment of labor? How are the equilibrium prices and quantities of other inputs determined? A C T I V E L E A R N I N G 1 Computing MPL and VMPL A C T I V E L E A R N I N G 1 Answers A C T I V E L E A R N I N G 1 Answers A C T I V E L E A R N I N G 2 Changes in labor-market equilibrium In each of the following scenarios, use a diagram of the market for (domestic) auto workers to find the effects on their wage and employment. A. Baby Boomers who worked in the auto industry retire. B. Car buyers’ preferences shift toward imported autos. C. Technological progress boosts productivity in the auto manufacturing industry. A C T I V E L E A R N I N G 2 Answers to A A C T I V E L E A R N I N G 2 Answers to B A C T I V E L E A R N I N G 2 Answers to C CHAPTER SUMMARY The economy’s income distribution is determined in the markets for the factors of production. The three most important factors of production are labor, land, and capital. A firm’s demand for a factor is derived from its supply of output. Competitive firms maximize profit by hiring each factor up to the point where the value of its marginal product equals its rental price. CHAPTER SUMMARY The supply of labor arises from the trade-off between work and leisure, and yields an upward-sloping labor supply curve. The price paid to each factor adjusts to balance supply and demand for that factor. In equilibrium, each factor is compensated according to its marginal contribution to production. Factors of production are used together. A change in the quantity of one factor affects the marginal products and equilibrium earnings of all factors. * How the Rental Price of Land Is De