【正文】 ate cost (MC) is the private cost of producing one more unit of a good or service. An external cost of production is a cost that is not borne by the producer but is borne by others. Marginal external cost is the cost of producing one more unit of a good or service that falls on people other than the producer. 169。 2020 Pearson AddisonWesley The Tragedy of the Commons Sustainable Use of a Renewable Resource Renewable resource is one that replenishes itself by birth and growth of new members of the population. Sustainable catch is the quantity of fish that can be caught year after year without depleting the stock. If the stock is small, the quantity of new fish born is small, so the sustainable catch is small. If the stock is large, many fish are born but they must to plete for food…. so only a small number survive to reproduce and grow large enough for fishers to catch. 169。 2020 Pearson AddisonWesley –Markets for Land Services and Natural Resources –Land consists of all the gifts of nature—natural resources. The market for land as a factor of production is the market for the services of land—the use of land. –The price of the services of land is a rental rate. –Nonrenewable natural resources are resources that can be used only once, such as oil, natural gas, and coal. –The prices of nonrenewable natural resources are determined in global modity markets. The Anatomy of Factor Markets 169。 2020 Pearson AddisonWesley –Substitution Effect –At wage rates below $25 an hour, the higher the wage rate the greater is the quantity of labor that Jill supplies. –The wage rate is Jill’s opportunity cost of leisure. –The substitution effect describes how a person responds to an increasing opportunity cost of leisure. –The person reduces the amount of leisure and increases the quantity of labor supplied. Labor Markets 169。 2020 Pearson AddisonWesley ?Monopsony and the Minimum Wage –The imposition of a minimum wage might actually increase the quantity of labor hired by a monopsony. –Figure shows why. Labor Markets 169。 2020 Pearson AddisonWesley ?Technology ?New technologies decrease the demand for some types of labor and increase the demand for other types. ?For example, if a new automated breadmaking machine bees available, a bakery might install one of these machines and fire most of its workforce— a decrease in the demand for bakery workers. ?But the firms that manufacture and service automated breadmaking machines hire more labor, so there is an increase in the demand for this type of labor. The Demand for a Factor of Production 169。 2020 Pearson AddisonWesley You know that wage rates vary a lot: A server at McDonald’s earns $8 an hour. Demetrio Luna who cleans the windows of Houston’s highrise buildings makes $12 an hour. Richard Seymour, who plays for the New England Patriots, collects a cool $25 million a year. What determines the wages that people earn? The price of oil became a big issue in 2020 as new record highs were set. What determines the prices of the natural resources that we use to produce goods and services? 169。 2020 Pearson AddisonWesley Figure shows how a pollution tax equal to the marginal external cost can achieve an efficient oute. At the quantity of the good produced MSC = MSB. The government collect a tax revenue. Negative Externalities: Pollution 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 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 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 ?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 –A Labor Market with a Union –A labor union is an anized group of w