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The Economics of Labor Markets参考
The Economics of Labor Markets Chapter 18 Factors of Production Factors of production are the inputs used to produce goods and services. The Market for the Factors of Production The demand for a factor of production is a derived demand. A firm’s demand for a factor of production is derived from its decision to supply a good in another market. The Demand for Labor Labor markets, like other markets in the economy, are governed by the forces of supply and demand. The Versatility of Supply and Demand... The Demand For Labor Most labor services, rather than being final goods ready to be enjoyed by consumers, are inputs into the production of other goods. The Production Function and The Marginal Product of Labor The production function illustrates the relationship between the quantity of inputs used and the quantity of output of a good. How the Competitive Firm Decides How Much Labor to Hire The Production Function... The Production Function and The Marginal Product of Labor The marginal product of labor is the increase in the amount of output from an additional unit of labor. MPL = ?Q/?L MPL = (Q2 – Q1)/(L2 – L1) Diminishing Marginal Product of Labor As the number of workers increases, the marginal product of labor declines. As more and more workers are hired, each additional worker contributes less to production than the prior one. The production function becomes flatter as the number of workers rises. The Production Function... The Value of the Marginal Product of Labor The value of the marginal product is the marginal product of the input multiplied by the market price of the output. VMPL = MPL X P The Value of the Marginal Product of Labor The value of the marginal product is measured in dollars. It diminishes as the number of workers rises because the market price of the good is constant. The Value of the Marginal Product and the Demand for Labor To maximize profit, the competitive, profit-maximizing firm hires workers up to the point where the value of marginal
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