1. Copyright © 2002 Pearson Education, Inc. Slide 1

2. Copyright © 2002 Pearson Education, Inc. Slide 2 Consumer and Firm Behavior: The Work-Leisure Decision and Profit Maximization Chapter 4

3. Copyright © 2002 Pearson Education, Inc. Slide 3 Figure 4-1 Indifference Curves

4. Copyright © 2002 Pearson Education, Inc. Slide 4 Figure 4-2 Properties of Indifference Curves

5. Copyright © 2002 Pearson Education, Inc. Slide 5 Figure 4-3 Representative Consumers Budget Constraint (T > )

6. Copyright © 2002 Pearson Education, Inc. Slide 6 Figure 4-4 Representative Consumers Budget Constraint (T < )

7. Copyright © 2002 Pearson Education, Inc. Slide 7 Figure 4-5 Consumer Optimization

8. Copyright © 2002 Pearson Education, Inc. Slide 8 Figure 4-6 The Representative Consumer Chooses not to Work

9. Copyright © 2002 Pearson Education, Inc. Slide 9 Figure 4-7 An Increase in the Consumers Dividend Income

10. Copyright © 2002 Pearson Education, Inc. Slide 10 Figure 4-8 Increase in the real Wage Rate-Income and Substitution Effects

11. Copyright © 2002 Pearson Education, Inc. Slide 11 Figure 4-9 Labor Supply Curve

12. Copyright © 2002 Pearson Education, Inc. Slide 12 Figure 4-10 Effect of an Increase in Dividend Income or a Decrease in Taxes

13. Copyright © 2002 Pearson Education, Inc. Slide 13 Figure 4-11 Perfect Complements

14. Copyright © 2002 Pearson Education, Inc. Slide 14 Figure 4-12 Real Wage in Manufacturing, 1947-1998

15. Copyright © 2002 Pearson Education, Inc. Slide 15 Figure 4-13 Average Hours per Week in Manufacturing, 1947-1998

16. Copyright © 2002 Pearson Education, Inc. Slide 16 Figure 4-14 Production Function, Fixing the Quantity of Capital and Varying the Quantity of Labor

17. Copyright © 2002 Pearson Education, Inc. Slide 17 Figure 4-15 Production Function, Fixing the Quantity of Labor and Varying the Quantity of Capital

18. Copyright © 2002 Pearson Education, Inc. Slide 18 Figure 4-16 Marginal Product of Labor Schedule for the Representative Firm

19. Copyright © 2002 Pearson Education, Inc. Slide 19 Figure 4-17 Adding Capital Increases the Marginal Product of Labor

20. Copyright © 2002 Pearson Education, Inc. Slide 20 Figure 4-18 Total Factor Productivity Increases

21. Copyright © 2002 Pearson Education, Inc. Slide 21 Figure 4-19 Effect of an Increase in Total Factor Productivity on the Marginal Product of Labor

22. Copyright © 2002 Pearson Education, Inc. Slide 22 Figure 4-20 The Solow Residual for the United States

23. Copyright © 2002 Pearson Education, Inc. Slide 23 Figure 4-21 Revenue, Variable Costs, and Profit Maximization

24. Copyright © 2002 Pearson Education, Inc. Slide 24 Figure 4-22 The Marginal Product of Labor Curve Is the Labor Demand Curve of the Profit-Maximizing Firm