【正文】 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 Union and a Monopsony –Sometimes both the firm and the employees have market power when a monopsony encounters a labor union, a situation called a bilateral monopoly. –Both the employer and the union must judge each others market power and e to an agreement on the wage rate paid and the number of workers employed. –Depending on the relative costs that each party can inflict on the other, the oute of this bargaining might favor either the union or the firm. Labor Markets 169。 2020 Pearson AddisonWesley –Because the monopsony controls the wage rate, the marginal cost of labor exceeds the wage rate. –The marginal cost of labor curve MCL is upward sloping. –The monopsony maximizes profit by hiring the quantity of labor at which MCL = VMP. 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 –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 Market Supply Curve A market supply curve shows the quantity of labor supplied by all households in a particular job market. The market supply curve is the horizontal sum of the individual supply of labor curves. Along the supply curve in a particular job market, the wage rates available in other job markets remain the same. Despite the fact that an individual’s labor supply curve eventually bends backward, the market supply curve of labor slopes upward. Labor Markets 169。 2020 Pearson AddisonWesley –Ine Effect –The higher the wage rate, the greater is Jill’s ine. –An increase in ine enables the consumer to buy more of most goods. –Leisure is a normal good, and the ine effect describes how a person responds to a higher wage rate. –The person increases the quantity of leisure and decreases the quantity of labor supplied. Labor Markets 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 ?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 Price of Other Factors of Production ?If the price of using capital decreases relative to the wage rate, a firm substitutes capital for labor and increases the quantity of capital it uses. ?Usually, the demand for labor will decrease when the price of using capital falls. The Demand for a Factor of Production 169。 2020 Pearson AddisonWesley ?Changes in a Firm’s Demand for Labor –The firm’s demand for labor depends on ?The price of the firm’s output ?The prices of other factors of production ?Technology The Demand for a Factor of Production 169。 2020 Pearson AddisonWesley –Figure shows the relationship between a firm’s value of marginal product and its demand for labor. –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 ?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