曼昆经济学原理英文版文案加习题答案18章.docx

1、曼昆经济学原理英文版文案加习题答案18章188THE MARKETS FOR THE FACTORS OF PRODUCTIONroductionWHATS NEW IN THE SEVENTH EDITION:The tables and values have been updated to the most recently available numbers. The In The News feature on The Economics of Immigration has been updated. LEARNING OBJECTIVES:By the end of this c

2、hapter, students should understand: the labor demand of competitive, profit-maximizing firms. the household decisions that lie behind labor supply. why equilibrium wages equal the value of the marginal product of labor. how the other factors of productionland and capitalare compensated. how a change

3、 in the supply of one factor alters the earnings of all of the factors.CONTEXT AND PURPOSE:Chapter 18 is the first chapter in a three-chapter sequence that addresses the economics of labor markets. Chapter 18 develops and analyzes the markets for the factors of productionlabor, land, and capital. Ch

4、apter 19 builds on Chapter 18 and explains in more detail why some workers earn more than others do. Chapter 20 addresses the distribution of income and the role the government can play in altering the distribution of income. The purpose of Chapter 18 is to provide the basic theory for the analysis

5、of factor marketsthe markets for labor, land, and capital. As you might expect, we find that the wages earned by the factors of production depend on the supply and demand for the factor. What is new in the analysis is that the demand for a factor is a derived demand. That is, a firms demand for a fa

6、ctor is determined by its decision to supply a good in another market.KEY POINTS: The economys income is distributed in the markets for the factors of production. The three most important factors of production are labor, land, and capital. The demand for factors, such as labor, is a derived demand t

7、hat comes from firms that use the factors to produce goods and services. Competitive, profit-maximizing firms hire each factor up to the point at which the value of the factors marginal product equals its price. The supply of labor arises from individuals trade-offs between work and leisure. An upwa

8、rd-sloping labor supply curve means that people respond to an increase in the wage by working more hours and enjoying less leisure. The price paid to each factor adjusts to balance the supply and demand for that factor. Because factor demand reflects the value of the marginal product of that factor,

9、 in equilibrium each factor is compensated according to its marginal contribution to the production of goods and services. Because factors of production are used together, the marginal product of any one factor depends on the quantities of all factors that are available. As a result, a change in the

10、 supply of one factor alters the equilibrium earnings of all the factors.CHAPTER OUTLINE:Begin this chapter by reviewing how demand and supply determine product prices. Start by asking, “Why is chicken cheaper than steak?” and “Why are apples cheaper (per pound) than grapes?” Review the explanations

11、 using supply and demand analysis. Now ask, “Why do airline pilots earn more than school bus drivers?” and “Why is land on the Boardwalk in Atlantic City more expensive than land 50 miles southwest of Atlantic City?”I. Definition of factors of production: the inputs used to produce goods and service

12、s.A. The markets for these factors of production are similar to the markets for goods and services discussed earlier, but they are different in one important way.B. The demand for a factor of production is a derived demand, meaning that the firms demand for a factor of production is derived from its

13、 decision to supply a good in another market.II. The Demand for LaborIn the market for labor, households are the suppliers while firms are the demanders. You will need to remind students of this because they are used to seeing markets in which this is reversed.A. The wage earned by workers is determ

14、ined by the supply and demand for workers.Figure 1B. The Competitive Profit-Maximizing Firm1. Example: A firm that owns an orchard must decide how many apple pickers to hire.2. Assume that the firm operates in both a competitive output market and a competitive labor market.a. This implies that the f

15、irm is a price taker in the apple market, meaning that it has no control over the price at which it can sell its apples.b. The firm is also a price taker in the labor market, meaning that it has no control over the wage that it must pay its apple pickers.3. Assume also that the firms goal is to maxi

16、mize profit (total revenue total cost).C. The Production Function and the Marginal Product of Labor1. The firm must consider how the quantity of apples it can harvest and sell is affected by the number of apple pickers hired.2. Definition of production function: the relationship between the quantity

17、 of inputs used to make a good and the quantity of output of that good.3. Definition of marginal product of labor: the increase in the amount of output from an additional unit of labor.Table 1LQMPLVMPL(= P x MPL)WMarginal Profit00-1100 100$1,000$500$50021808080050030032406060050010042804040050010053

18、00202005003004. Definition of diminishing marginal product: the property whereby the marginal product of an input declines as the quantity of the input increases.Figure 2D. The Value of the Marginal Product and the Demand for Labor1. When deciding how many workers to hire, the firm considers how muc

19、h profit each worker would bring in.2. Because profit equals total revenue minus total cost, the profit from an additional worker is the workers contribution to revenue minus the workers wage.3. Definition of value of the marginal product: the marginal product of an input times the price of the outp

20、ut.a. Economists sometimes refer to the value of the marginal product as the firms marginal revenue product.b. The value of the marginal product is the extra revenue a firm gets from hiring an additional unit of a factor of production.ALTERNATIVE CLASSROOM EXAMPLE:Binkle, Inc. produces and sells pla

21、stic bottles in a perfectly competitive market at a price of $0.25. Binkle hires its labor in a perfectly competitive labor market at an hourly wage of $10. The relationship between the quantity of labor hired and the amount of output produced per hour is presented in the following table:LQMPLVMPL(=

22、 P x MPL)WMarginal Profit00-1 9090$22.5 $10$12.521708020101032407017.5107.54300601510553505012.510 2.5639040 1010 07420307.5102.584402051054. If the wage for workers is $500 per week, the firm will only hire three workers.a. For the first three workers, the value of the marginal product is greater t

23、han the wage, so the marginal profit from hiring these workers is positive.b. For the fourth worker, the value of the marginal product is lower than the wage, so the marginal profit from hiring this worker would be negative.5. We can show the firms decision graphically.a. The value of the marginal p

24、roduct curve will slope downward because of the diminishing marginal product of labor.b. The wage is depicted by a horizontal line because the firm is a price taker in the labor market.6. A competitive, profit-maximizing firm hires workers up to the point at which the value of the marginal product o

25、f labor equals the wage.Figure 37. Because the firm chooses the quantity of labor at which the value of the marginal product equals the wage, the value-of-the-marginal-product curve is the firms labor demand curve.Emphasize that because the value of the marginal product involves both the marginal pr

26、oduct and the price of the good, any change in either of these two determinants will lead to a change in the demand for labor.E. FYI: Input Demand and Output Supply: Two Sides of the Same Coin1. If W is the wage and an extra unit of labor produces MPL units of output, then the marginal cost of a uni

27、t of output is MC = W/MPL.2. A profit-maximizing firm chooses the quantity of labor so that the value of the marginal product (P x MPL) is equal to the wage (W):P x MPL = W.Divide both sides by MPL to get:P = W/MPL.Because W/MPL = MC, we have:P = MC.Students will probably not appreciate how importan

28、t this is. For that reason, make sure that you go through it slowly.3. When a competitive firm hires labor up to the point at which the value of the marginal product is equal to the wage, it also produces a level of output at which price equals marginal cost.F. What Causes the Labor Demand Curve to

29、Shift?1. The Output Pricea. An increase in the price of the product raises the value of the marginal product of labor and therefore increases the demand for labor.b. A decrease in the price of the product lowers the value of the marginal product of labor and therefore decreases the demand for labor.

30、2. Technological Changea. Technological advance raises the marginal product of labor, which in turn raises the value of the marginal product of labor.b. It is also possible for technological change to reduce labor demand. A labor-saving technological change (such as an industrial robot) could reduce

31、 the marginal product of labor and thus the value of the marginal product of labor.c. History suggests that most technological progress has been labor augmenting.3. The Supply of Other Factorsa. The quantity available of one factor can affect the marginal product of another.b. Therefore, any change in the availability of another factor will likely affect the demand for labor.III. The Supply of Labor A. The Trade-off between Work and Leisure1. Any hours spent working are hours that could be devoted to someth