MHR 749 Lecture Notes - Lecture 5: Factors Of Production, Marginal Product, Marginal Revenue
23 Oct 2018
School
Department
Course
Professor
Document Summary
Pay rates reflect all costs associated with employment. Markets faced by employers are competitive: labour demand indicates how many employees will be hired by an employer. In the short-run, an employer cannot change any factor of production except human resources: a(cid:374) e(cid:373)plo(cid:455)er"s le(cid:448)el of produ(cid:272)tio(cid:374) (cid:272)a(cid:374) (cid:272)ha(cid:374)ge i(cid:374) the short-run only if it changes the level of human resources. Labour supply: model assumes many people are seeking jobs, they possess accurate information about all job openings, and there are no barriers to mobility. Indicates the availability of talent that is available for work. Factors that affect demand: general economic conditions, business strategy what kind of workers to hire, when to outsource, layoff, subcontract workers, demand for product or service, technology, ability to pay (for workers) If a job has negative characteristics, then employers must offer higher wages: explains the presence of various pay rates in the market.
