AP-Microeconomics-Visuals-Unit4

AP-Microeconomics-Visuals-Unit4 - Unit 4 : Microeconomics...

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Unit 4 : Microeconomics National Council on Economic Education Visual 4.1 http://apeconomics.ncee.net Big Ideas about Factor, or Resource,Markets 1. The economic concepts are similar to those for product markets. 2. The demand for a factor of production is derived from the demand for the good or service produced from this resource. 3. A firm tries to hire additional units of a resource up to the point where the resource’s marginal revenue product (MRP) is equal to its marginal resource cost (MRC). 4. In hiring labor, a perfectly competitive firm will do best if it hires up to the point where MRP = the wage rate.Wages are the marginal resource cost of labor. 5. If you want a high wage: (A) Make something people will pay a lot for. (B) Work for a highly productive firm. (C) Be in relatively short supply. (D) Invest in your human capital. 6. Real wages depend on productivity. 7. Productivity depends on real or physical capital, human capital, labor quality and technology.
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Unformatted text preview: Unit 4 : Microeconomics National Council on Economic Education Visual 4.2 http://apeconomics.ncee.net The Demand for a Resource: Perfect Competition in the Sale of the Product Unit 4 : Microeconomics National Council on Economic Education Visual 4.3 http://apeconomics.ncee.net The Demand for a Resource: Imperfect Competition in the Sale of the Product Unit 4 : Microeconomics National Council on Economic Education Visual 4.4 http://apeconomics.ncee.net The Supply of and Demand for Labor in a Competitive Labor Market Unit 4 : Microeconomics National Council on Economic Education Visual 4.5 http://apeconomics.ncee.net The Wage Rate and Level of Employment In a Monopsonistic Labor Market Unit 4 : Microeconomics National Council on Economic Education Visual 4.6 http://apeconomics.ncee.net The Determination of Economic Rent...
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This note was uploaded on 04/25/2010 for the course EDU 234234 taught by Professor Smith during the Spring '10 term at Oregon Tech.

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AP-Microeconomics-Visuals-Unit4 - Unit 4 : Microeconomics...

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