平狄克微观经济学第六版第十四章课后答案

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1、CHAPTER 14MARKETS FOR FACTOR INPUTS The following two chapters examine the markets for labor and capital. Although the discussion in this chapter is general, most of the examples refer to labor as the only variable input to production, wi th the exception of Example 14.1, which discusses “The Demand

2、 for Jet Fuel” by airlines. Labor demand and supply are discussed in the first section, and the competitive factor market equilibrium and economic rent are discussed in the second section. Section 14.3 explores the factor market structure for the case where the buyer has monopsony power, and section

3、 14.4 explores the case of monopoly power on the part of the seller of the factor.An understanding of this chapter relies on concepts from Chapters 4 through 8 and 10. If you have just covered Chapters 11-13, you might begin by reviewing marginal product, marginal revenue, and cost minimization. You

4、 should then discuss marginal revenue product and the profit-maximizing = w. Explain why we are only interested in the portion of the MP curve below the condition MRPLaverage product curve (the downward-sloping portion. The derivation of the firms demand curve for labor is straightforward when labor

5、 is the only factor, but becomes more complicated when there arecurve shifts as the firm several variable inputs. In particular, you might explain why the MRPLsubstitutes one input for another in production in response to a price change by noting that the MRP L curve is drawn for a fixed level of th

6、e other variable input.When presenting the market labor demand curve, explain that since the input prices change as more inputs are demanded, the market demand curve is not simply the summation of individual demand curves. You can extend the presentation of price elasticity of input demand (see Exam

7、ple 14.1 by discussing the conditions leading to price sensitivity. Elasticity is greater (1 when the elasticity of demand for the product is higher, (2 when it is easy to substitute one input for another, and (3 when the elasticity of supply is higher for other inputs. Elasticity of supply, which w

8、as discussed in Chapter 2, is reintroduced in Example 14.2. You should also distinguish between short-run and long-run elasticity (see Figure 14.6.If you have already covered substitution and income effects, the students will be ready for the derivation of the backward-bending supply curve for labor

9、. Although Figure 14.9 is a straightforward application of these tools, students are often confused by the plotting of income against leisure. Point out that this is just another type of utility maximization problem where the two goods are leisure and income. Income can be thought of as the consumpt

10、ion of goods other than leisure, in that more income buys more goods. You can also implicitly assume that the price of other goods is $1 and the price of leisure is the wage. The supply of labor curve is derived by changing the wage and finding the new level of hours worked. An individuals supply cu

11、rve of labor is back ward bending only when the income effect dominates the substitution effect and leisure is a normal good. Show typical supply curves for each group in Table 14.2. For an experimental study of the labor-leisure trade-off see Battalio, Green, and Kagel, “In come-Leisure Tradeoff of