文档介绍：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...
(a) The Market for Apples
(b) The Market for Apple Pickers
Quantity of Apples
Quantity of Apple Pickers
Q
L
P
W
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0
Price of Apples
Wage of Apple Pickers
Demand
Demand
Supply
Supply
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 petitive Firm Decides How Much Labor to Hire
The Production Function...
0
0
50
100
150
200
250
300
350
0
1
2
3
4
5
6
Quantity of Apple Pickers
Quantity of Apples
1
2
3
4
5
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)