ECON 102 Lecture Notes - Lecture 23: Marginal Cost, Demand Curve, Subsistence Agriculture

• School: University of Illinois
• Department: Economics
• Course: ECON 102
• Professor: Isaac Di Ianni

Document Summary

Unions can create benefits for some workers in the expense of. Union membership has been falling for decades. The labor demand curve: what determines wage, premarginalist theories: Iron law of wages: the cost of subsistence and reproduction. Marxism: the amount of bargaining power that workers have relative to employers. Marginal revenue productivity theory of wages: the theory that in a competitive market a worker"s wage is determined bythat worker"s marginal revenue product. Marginal revenue product: the marginal product of labor multiplied by marginal revenue (mp1 * mr) total output increase: john bates clark, marginal product = hire another worker, by how much does. Ex. if marginal product is 5 and marginal revenue is. per unit, that worker"s labor is per hour. 5* = : workers = variable input. They"ve hired so many workers that new workers will reduce total amount of output producing less overall. Laying off workers always good idea if marginal product is negative.