{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

04+Aggregate+Production+and+Productivity%2C+Part+2

04+Aggregate+Production+and+Productivity%2C+Part+2 - Agenda...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 4-1 Aggregate Production and Productivity, Part 2 4-2 Agenda 1. Factor Prices 2. The Demand for Labor 3. The Supply of Labor 4. Labor Market Equilibrium 5. Full-Employment Output 4-3 Determination of Factor Prices To calculate factor prices, the demand for and supply of each factor of production must be determined. 4-4 Determination of Factor Prices Assumptions: 1. The labor market is competitive. 2. Workers are homogeneous. 3. The capital stock fixed. 4. Firms maximize profits. 5. Individuals maximize utility.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon