【正文】 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 –Like all firms, the monopsony has a downwardsloping demand for labor curve. –The supply curve of labor tells us the lowest wage rate of which a given quantity of labor is willing to work. Labor Markets 169。 2020 Pearson AddisonWesley ?Competitive Labor Market Equilibrium ?Labor market equilibrium determines the wage rate and the number of worker employed. Labor 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 ?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 –The value of marginal product curve passes through the midpoints of the bars. –The VMP of the 3rd worker is $10 an hour. –So at a wage rate of $10 an hour, the firm hires 3 workers on its demand for labor curve. The Demand for a Factor of Production 169。 2020 Pearson AddisonWesley –VMP equals marginal product of labor multiplied by the market price of the good produced. The Demand for a Factor of Production 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 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 The Tragedy of the Commons Figure shows the situation with an efficient number of ITQs. The market price of an ITQ increases the marginal social cost to MC + price of ITQ. Users of the resource make MSB equal MC + price of ITQ, and the oute is efficient. 169。 2020 Pearson AddisonWesley The Tragedy of the Commons Achieving an Efficient Oute It is harder to achieve an efficient use of a mon resource than to define the conditions under which it occurs. The three main methods used to achieve the efficient use of a mon resource are ? Property rights ? Production quotas ? Individual transferable quotas (ITQs). 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 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 The Coase Theorem The Coase theorem is a proposition that if property rights exist, only a small number of parties are involved, and transactions co