# Agenda Collect HW Review/Overview Unions and Minimum Wage Stocks Research Reporting Former Students HW.

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Agenda Collect HW Review/Overview Unions and Minimum Wage Stocks Research Reporting Former Students HW

Factors Market

Factors of Production Factors, Resources, Inputs – Land – Labor – Capital – Entrepreneurship

Cost Minimizing Combination of Resources at a Given Level of Output MPP/\$ of Labor = MPP/\$ of Capital – \$ = MRC = Price (in perfectly competitive market) – Example MPP last unit of labor = 5Wage rate (MRC)= \$10 MPP last unit of capital = 8 MRC = \$16 Labor MPP/\$ =.5Capital MPP/\$ =.5

Optimal Combination (Profit Maximizing) of Resources at a Given Level of Output MRP/\$ of Labor = MRP/\$ of Capital – \$ = MRC = Price (in perfectly competitive market) – Example MRP last unit of labor = \$10Wage rate (MRC)= \$10 MRP last unit of capital = \$16 MRC = \$16 Labor MRP/\$ = Capital MRP/\$ = 1

Perfectly Competitive Labor Market

Households = Supply Firms = Demand

Perfectly Competitive Market and Firm

Wage Elasticity- Labor Markets

Perfectly Competitive Market and Firm Supply = Marginal Resource Cost (MRC) Demand = Marginal Revenue Product (MRP) Profit-Max Q of Labor: MRP=MRC

Perfectly Competitive Firm MRP>MRC- hire more MRC>MRP- fire some

Monopolist Monopolist and Perfectly Competitive Labor Market

Labor Market Monopsony in Competitive Product Market *one buyer of labor (only one firm hiring)

Labor Market Monopsony Product Market Monopoly *one buyer of labor (only one firm hiring)

Minimum Wage in PC Labor Market?

Minimum Wage with Monopsony in Labor Market?

Unions in PC Labor Market?

Unions and Monopsonistic Labor Market?

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