Chapter 10 includes: 10. 1 Introduction to Factor Market 10.2 The Market Demand for the Factors of Production 10.3 Labor Market Equilibrium 10. 4 Other Factors of production -Land and Capital 10. 5 Monopoly and monopsony power in the labour market
6 Chapter 10 includes: 10.1 Introduction to Factor Market 10.2 The Market Demand for the Factors of Production 10.3 Labor Market Equilibrium 10.4 Other Factors of Production - Land and Capital 10.5 Monopoly and monopsony power in the labour market
Firm Choices in Input Markets m Labor market Firms Labor demand Labor supply
7 Firm Choices in Input Markets
Basic input-Output Relation Glass Tires Plastic Steel Other Component Automobile Factory
8 Basic Input-Output Relation Automobile Factory Steel Glass Tires Plastic Other Components
Inputs: Complementary and Substitutable The productivity of an input is the amount of output produced per unit of that input. a Inputs can be complementaryor substitutable this means that a firm's input demands are tightly linked together
9 Inputs: Complementary and Substitutable The productivity of an input is the amount of output produced per unit of that input. Inputs can be complementary or substitutable. This means that a firm’s input demands are tightly linked together
Introduction Factors of production Complementary inputs are factors of production that can be used together to enhance each other Substitutable inputs are factors of production that can be used in place of each other
10 Introduction: Factors of Production Complementary inputs are factors of production that can be used together to enhance each other. Substitutable inputs are factors of production that can be used in place of each other