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Lecture 16

Economics 1021A/B Lecture Notes - Lecture 16: Marginal Product


Department
Economics
Course Code
ECON 1021A/B
Professor
Michael Parkin
Lecture
16

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Chapter 18: Markets for factors of production
Supply labor = mental/physical work
Price of labor = wage rate
Market is competitive when theres lots of demand and supply
Demand for labor is always derived demand. Firms hire because they want to produce
something and need your skills
Firms want to maximize profit.
value of marginal product
omarginal product x price
firms use marginal analysis for hiring
oMB>MC
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