ECN 104 Lecture Notes - Lecture 11: Marginal Utility, Marginal Product, Physical Capital

6 views4 pages

Document Summary

Factors of production items that are consumed by households: any resource that is used by firms to produce goods and services, bought and sold in factor markets, factor prices the prices in factor markets. Economists divide factors of production into four principal classes: Labour: a resource provided by nature, the work done by human beings. Physical capital: which consists of manufactured resources such as buildings, equipment, tools, and machines, the improvement in labour created by education and knowledge. Human capital: that is embodied in the workforce. Factor prices play a key role in the allocation of resources among producers because of two features that make these markets special: demand for the factor, which is derived from the firm"s output choice. Factor markets are where most of us get the largest shares of our income. Factor incomes and the distribution of income factor distribution of income: factor prices,

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions