Presentation is loading. Please wait.

Presentation is loading. Please wait.

Producers: Labor Markets

Published byΆμωσις Παχής Modified over 4 years ago

Similar presentations

Presentation on theme: "Producers: Labor Markets"— Presentation transcript:

1 Producers: Labor Markets

2 Labor supply (consumers)

3 Producers Producers: have a technology
Technology given by production function Two inputs: Capital and Labor Example MPL and MPK (decreasing) Short and Long run (fixed K or not) Constant Returns to Scale

4 MPL (interpretation)

5 Short Run (fixed K) Profit maximization Price taking
Example (Short run)

6 Short run: Demand for Labor

7 Labor Market: Equilibrium

8 Labor Market: Equilibrium
Capital Technology Preferences

9 Labor Market: Minimal Wage

10 Long run ( not fixed) We choose simultaneously and

11 Long run

12 Profit Maximization and CRS
Suppose that are optimal What can we say about at ? Profit maximization not always well defined

Download ppt "Producers: Labor Markets"

Similar presentations

The Closed Economy How the real interest rate keeps the goods market in equilibrium Y = C + I(r) + G.

The Closed Economy How the real interest rate keeps the goods market in equilibrium Y = C + I(r) + G.
How the real exchange rate keeps the goods market in equilibrium.

How the real exchange rate keeps the goods market in equilibrium.
Inputs: Factors of Production Factors of production: Land Labor Capital Intermediate goods (Entrepreneurial Services ) Production Costs = Costs of Inputs.

Inputs: Factors of Production Factors of production: Land Labor Capital Intermediate goods (Entrepreneurial Services ) Production Costs = Costs of Inputs.
General Equilibrium and Efficiency. General Equilibrium Analysis is the study of the simultaneous determination of prices and quantities in all relevant.

General Equilibrium and Efficiency. General Equilibrium Analysis is the study of the simultaneous determination of prices and quantities in all relevant.
Profit Maximization (Cont’d) Renting or buying capital Profit maximization and returns to scale.

Profit Maximization (Cont’d) Renting or buying capital Profit maximization and returns to scale.
CHAPTER 5 The Production Process and Costs Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior.

CHAPTER 5 The Production Process and Costs Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior.
Consumer Behavior Representative Consumer Rationale Two goods Consumption bundles.

Consumer Behavior Representative Consumer Rationale Two goods Consumption bundles.
1 Aggregate Supply: Short – Run & Long – Run. 2 Short-run Aggregate Supply Aggregate Supply (AS) shows the quantity of real GDP produced at different.

1 Aggregate Supply: Short – Run & Long – Run. 2 Short-run Aggregate Supply Aggregate Supply (AS) shows the quantity of real GDP produced at different.
Chapter 3: National Income. Production Function Output of goods and services as a function of factor inputs Y = F(K, L) Y = product output K = capital.

Chapter 3: National Income. Production Function Output of goods and services as a function of factor inputs Y = F(K, L) Y = product output K = capital.
Introduction In the last lecture we defined and measured some key macroeconomic variables. Now we start building theories about what determines these key.

Introduction In the last lecture we defined and measured some key macroeconomic variables. Now we start building theories about what determines these key.
Cost Minimization An alternative approach to the decision of the firm

Cost Minimization An alternative approach to the decision of the firm
Chapter 3 The Demand for Labor. Copyright © 2003 by Pearson Education, Inc.3-2.

Chapter 3 The Demand for Labor. Copyright © 2003 by Pearson Education, Inc.3-2.
AP Economics December 8, 2014 1.Review Unit 3 Exam: Theory of the Firm 2.Begin Unit 4: Factor Markets 3.Unit 4 Exam NEW DATE: Monday, December 22 and Tuesday,

AP Economics December 8, Review Unit 3 Exam: Theory of the Firm 2.Begin Unit 4: Factor Markets 3.Unit 4 Exam NEW DATE: Monday, December 22 and Tuesday,
Questions: (1) Where do the labor demand and supply curves come from? (2) How well do they explain the facts?

Questions: (1) Where do the labor demand and supply curves come from? (2) How well do they explain the facts?
28. 29 The Circular Flow Spending Goods and services bought Revenue Goods and services sold Labor, land, and capital Income = Flow of inputs and outputs.

The Circular Flow Spending Goods and services bought Revenue Goods and services sold Labor, land, and capital Income = Flow of inputs and outputs.
Chapter 4 Consumer and Firm Behavior: The Work- Leisure Decision and Profit Maximization Copyright © 2014 Pearson Education, Inc.

Chapter 4 Consumer and Firm Behavior: The Work- Leisure Decision and Profit Maximization Copyright © 2014 Pearson Education, Inc.
Chapter 3 Labor Demand McGraw-Hill/Irwin

Chapter 3 Labor Demand McGraw-Hill/Irwin
Review of the previous Lecture The overall level of prices can be measured by either 1. the Consumer Price Index (CPI), the price of a fixed basket of.

Review of the previous Lecture The overall level of prices can be measured by either 1. the Consumer Price Index (CPI), the price of a fixed basket of.
Chapter 3 Labor Demand.

Chapter 3 Labor Demand.
3. The demand for labor 3.1 The determinants: – Changes on the curve  wages (-) – Shifts of the curve (ceteris paribus): D C (+) Workers productivity.

3. The demand for labor 3.1 The determinants: – Changes on the curve  wages (-) – Shifts of the curve (ceteris paribus): D C (+) Workers productivity.

Similar presentations

Ads by Google