Ebook Economics (18th edition): Part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook Economics (18th edition): Part 2
Ebook Economics (18th edition): Part 2
PART THREEMicroeconomics of ResourceMarkets12THE DEMAND FOR RESOURCES13WAGE DETERMINATION14 RENT. INTEREST. AND PROFIT15 NATURAL RESOURCE AND ENERGY E Ebook Economics (18th edition): Part 2ECONOMICShttps: //k hot h u vien .comwe will combine resource (labor) demand with labor supply to analyze wage rates. In Chapter 14 we will use resource demand and resource supply to examine the prices of and returns to, other productive resources. Issues relating Lo tl»e use of natural resources ar Ebook Economics (18th edition): Part 2e the subject of Chapter 15.Significance of Resource PricingStudying resource pricing is important for several reasons:•Money-income determination ResEbook Economics (18th edition): Part 2
ource prices arc a major factor in determining the income of households. The expenditures that firms make in acquiring eco nomic resources How as wagePART THREEMicroeconomics of ResourceMarkets12THE DEMAND FOR RESOURCES13WAGE DETERMINATION14 RENT. INTEREST. AND PROFIT15 NATURAL RESOURCE AND ENERGY E Ebook Economics (18th edition): Part 2tain the greatest profit, the firm must produce the profit-maximizing out pm with the most efficient (least costly) combination of resources. Resource prices play the main role in determining the quantities ofland, labor, capital, and entrepreneurial ability that will he combined in producing each g Ebook Economics (18th edition): Part 2ood or service (see lable 2.1, p. 36).•Resource allocation Just as product prices allocate finished goods and services to consumers, resource prices aEbook Economics (18th edition): Part 2
llocate resources among industries and firms. In a dynamic economy, where technology and product demand often change, the efficient allocation of resoPART THREEMicroeconomics of ResourceMarkets12THE DEMAND FOR RESOURCES13WAGE DETERMINATION14 RENT. INTEREST. AND PROFIT15 NATURAL RESOURCE AND ENERGY E Ebook Economics (18th edition): Part 2icy issues .Many policy issues surround the resource market. Examples: To what extent should government redistribute income through taxes and transfers? should government do any thing to dis courage “excess” pay to corporate executives? Should it increase lhe legal minimum wage? Is the provision of Ebook Economics (18th edition): Part 2subsidies to farmers efficient? Should government encourage or restrict labor unions? The facts and debates relating IO lhese policy- questions arc grEbook Economics (18th edition): Part 2
ounded on resource pricing.Marginal Productivity Theory of Resource DemandIn discussing resource demand, we will first assume that a firm sells its ouPART THREEMicroeconomics of ResourceMarkets12THE DEMAND FOR RESOURCES13WAGE DETERMINATION14 RENT. INTEREST. AND PROFIT15 NATURAL RESOURCE AND ENERGY E Ebook Economics (18th edition): Part 2and is consistent with die model of a competitive labor market that we will develop in Chapter 13. In a competitive Ịnndtưt market, the firm is a “price taker" and can dispose of as little or asmuch output as it chooses at die market price, rhe firm is selling such a negligible fraction of total out Ebook Economics (18th edition): Part 2put that its output decisions exert no influence on product price. Similarly, die firm also is a “price taker” (or “wage taker”) in die com pctilivc rEbook Economics (18th edition): Part 2
esource market. It purchases such a negligible fraction of the total supply- of the resource that its buying (or hiring) decisions do not influence thPART THREEMicroeconomics of ResourceMarkets12THE DEMAND FOR RESOURCES13WAGE DETERMINATION14 RENT. INTEREST. AND PROFIT15 NATURAL RESOURCE AND ENERGY E Ebook Economics (18th edition): Part 2e demand for a resource is an inverse relationship between the price of the resource and the quantity of the resource demanded. This demand is a derived demand: It is derived from the products that the resources help produce. Resources usually do not directly satisfy customer wants but do so indirec Ebook Economics (18th edition): Part 2tly through their use in producing goods and services. Almost nobody wants to consume an acre of land, a John Deere tractor, or the labor services ofEbook Economics (18th edition): Part 2
a fanner, but millions of households do want to consume the food and fiber products that these resources help produce. Similarly, the demand for airplPART THREEMicroeconomics of ResourceMarkets12THE DEMAND FOR RESOURCES13WAGE DETERMINATION14 RENT. INTEREST. AND PROFIT15 NATURAL RESOURCE AND ENERGY E Ebook Economics (18th edition): Part 2or accountants, barbers, and child care workers.Marginal Revenue ProductBecause resource demand is derived from product demand, die strength of die demand tor any resource will depend on:■ rhe productivity of die resource in helping to create a good or service.• The market value or price of the good Ebook Economics (18th edition): Part 2 or service it helps produce.A resource that is highly productive in turning out a highly valued commodity will he in great demand. On lhe other hand,Ebook Economics (18th edition): Part 2
a relatively unproductive resource that is capable of producing only a minimally valued commodity will be in little demand. And no demand whatsoever PART THREEMicroeconomics of ResourceMarkets12THE DEMAND FOR RESOURCES13WAGE DETERMINATION14 RENT. INTEREST. AND PROFIT15 NATURAL RESOURCE AND ENERGY E Ebook Economics (18th edition): Part 2esource productivity and product price in determining resource254The Denvjnd for Resources ITABLE 12.1 The Demand for Labor: Pure Competition in the Sale of the Product-1-2-3-4-5(«)Units ofTotal ProductMarginalProductTotal Revenue.Marginal RevenueResource(Output)Product (MP)Price(2) X (4)Product (MR Ebook Economics (18th edition): Part 2P)demand. I lore we assume that a firm adds one variable resource, lalx>r, to its fixed plant. Columns 1 and 2 give the number of units of the resourcEbook Economics (18th edition): Part 2
e applied to production and the resulting total product (output). Column 3 provides the marginal product (MP), or additional output, resulting from usPART THREEMicroeconomics of ResourceMarkets12THE DEMAND FOR RESOURCES13WAGE DETERMINATION14 RENT. INTEREST. AND PROFIT15 NATURAL RESOURCE AND ENERGY E Ebook Economics (18th edition): Part 2or to fall beyond some point. For simplicity, wc assume that these diminishing marginal returns—these declines in marginal product—begin with the first worker hired.Product Price But the derived demand tor a resource depends also on the price of the product it produces. Column 4 in Table 12.1 adds t Ebook Economics (18th edition): Part 2his price information. Product price is constant, in this case at $2, because the product market is competitive. The firm is a price taker and will seEbook Economics (18th edition): Part 2
ll units of output only at this market price.•Multiplying column 2 by column 4 provides the totalrevenue data of column 5. These arc the amounts of rePART THREEMicroeconomics of ResourceMarkets12THE DEMAND FOR RESOURCES13WAGE DETERMINATION14 RENT. INTEREST. AND PROFIT15 NATURAL RESOURCE AND ENERGY E Ebook Economics (18th edition): Part 2nge in total revenue resulting from the use of each additional unit of a resource (labor, in this case). In equation form,change in total revenue product un ‘ change in resource quantity Ebook Economics (18th edition): Part 2PART THREEMicroeconomics of ResourceMarkets12THE DEMAND FOR RESOURCES13WAGE DETERMINATION14 RENT. INTEREST. AND PROFIT15 NATURAL RESOURCE AND ENERGY EGọi ngay
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