【正文】 –The bars show the value of marginal product, which diminishes as the quantity of labor employed increases. The Demand for a Factor of Production 169。 2020 Pearson AddisonWesley –Figure illustrates Jill’s supply of labor curve. –At $5 an hour, Jill supplies no labor. –At $10 an hour, Jill supplies 30 hours of labor. –At $25 an hour, Jill supplies 40 hours of labor. –Jill’s supply of labor curve is a backward bending. Labor Markets 169。 2020 Pearson AddisonWesley –Monopsony in the Labor market –A monopsony is a market with just one buyer. –Decades ago, large manufacturing plants, steel mills, and coal mines were often the sole buyer of labor in their local labor markets. –Because a monopsony controls the labor market, it has the market power to set the market wage rate. –Today, in some parts of the country, large managed healthcare anizations are the major employer of healthcare professionals. Labor Markets 169。 2020 Pearson AddisonWesley –Suppose that the minimum wage is set at $15 an hour. –The minimum wage makes the supply of labor perfectly elastic over the range 0 to 150 workers. –So up to 150 workers, the marginal cost of hiring an additional worker equals the minimum wage. Labor Markets 169。 2020 Pearson AddisonWesley –A Labor Market with a Union –A labor union is an anized group of workers that aims to increase wages and influence other job conditions. –Influences on Labor Supply –One way to raise the wage rate is to decrease the supply of labor. –Influences on Labor Demand –Another way to raise the wage rate is to encourage people to buy goods produced by union workers, which raises the price of those goods and increases VMP of the workers. Labor Markets 169。 2020 Pearson AddisonWesley ?A Competitive Labor Market –A market in which many firms demand labor and many households supply labor. –Market Demand for Labor –The market demand for labor is obtained by summing the quantities of labor demanded by all firms at each wage rate. –Because each firm’s demand for labor curve slopes downward, so does the market demand curve. Labor Markets 169。 2020 Pearson AddisonWesley ?The Firm’s Demand for Labor –The value of the marginal product of labor (VMP) tells us what an additional worker is worth to a firm. –VMP tells us the revenue that the firm earns by hiring one more worker. –The wage rate tells us what an additional worker costs a firm. –VMP and the wage rate together determine the quantity of labor demanded by a firm. The Demand for a Factor of Production 169。 2020 Pearson AddisonWesley The Anatomy of Factor Markets –Four factors of production are ? Labor ? Capital ? Land (natural resources) ? Entrepreneurship ? Let’s take a look at the markets in which these factors of production are traded. 169。 2020 Pearson AddisonWesley The Tragedy of the Commons Property Rights By converting the mon resource to private property, fishers face the full social cost of their actions. The marginal social cost curve bees the supply curve and the resource is used efficiently. 169。 2020 Pearson AddisonWesley Negative Externality: Pollution Emissions Charges The government sets a price per unit of pollution, so that the more a firm pollutes, the higher are its emissions charges. For the emissions charge to induce the firm to generate the efficient level of pollution, the government would need a lot of information that is usually unavailable. 169。 2020 Pearson AddisonWesley At the market equilibrium, MSB is less than MSC, so the market produces an inefficient quantity of the good. At the efficient quantity of the good, MSC = MSB. With no regulation, the market produces too much of the good and creates a deadweight loss. Negative Externality: Pollution 169。 2020 Pearson AddisonWesley Negative Externality: Pollution Sources of Pollution Economic activity pollutes air, water, and land, and these individual areas of pollution interact through the ecosystem. The three biggest sources of pollution are road transportation, electricity generation, and industrial processes. 169。 2020 Pearson AddisonWesley Negative Externality: Pollution An externality is a cost or benefit that arises from production and falls on someone other than the producer, or a cost or benefit that arises from consumption and falls on someone other than the consumer. A negative externality imposes an external cost. 169。 2020 Pearson AddisonWesley Figure shows the equilibrium in an unregulated market with an external cost. The quantity of the good produced is where marginal private cost (MC) equals marginal social benefit (MSB). Negative Externality: Pollution 169。 2020 Pearson AddisonWesley Figure shows how a pollution tax equal to the marginal external cost can achieve an eff