1. Chapter 4 Consumer and Firm Behavior: The Work-Leisure Decision and Profit Maximazation

2. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-2 Figure 4.1 Indifference Curves

3. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-3 Figure 4.2 Properties of Indifference Curves

4. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-4 Figure 4.3 Representative Consumer's Budget Constraint (T >  )

5. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-5 Figure 4.4 Representative Consumer's Budget Constraint (T <  )

6. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-6 Figure 4.5 Consumer Optimization

7. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-7 Figure 4.6 The Representative Consumer Chooses Not to Work

8. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-8 Figure 4.7 An Increase  – T for the Consumer

9. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-9 Figure 4.8 Increase in the Real Wage Rate—Income and Substitution Effects

10. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-10 Figure 4.9 Labor Supply Curve

11. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-11 Figure 4.10 Effect of an Increase in Dividend Income or a Decrease in Taxes

12. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-12 Figure 4.11 Perfect Complements

13. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-13 Figure 4.12 Real Wage in the United States, 1980–2003

14. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-14 Figure 4.13 Average Weekly Hours in the United States, 1980–2003

15. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-15 Figure 4.14 Production Function, Fixing the Quantity of Capital and Varying the Quantity of Labor

16. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-16 Figure 4.15 Production Function, Fixing the Quantity of Labor and Varying the Quantity of Capital

17. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-17 Figure 4.16 Marginal Product of Labor Schedule for the Representative Firm

18. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-18 Figure 4.17 Adding Capital Increases the Marginal Product of Labor

19. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-19 Figure 4.18 Total Factor Productivity Increases

20. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-20 Figure 4.19 Effect of an Increase in Total Factor Productivity on the Marginal Product of Labor

21. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-21 Figure 4.20 The Solow Residual for the United States

22. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-22 Figure 4.21 Revenue, Variable Costs, and Profit Maximization

23. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 4-23 Figure 4.22 The Marginal Product of Labor Curve Is the Labor Demand Curve of the Profit-Maximizing Firm