西方经济学课件：第14章要素投入品市场

1、Chapter 14Markets for Factor InputsChapter 14Slide 2Topics to be DiscussednCompetitive Factor MarketsnEquilibrium in a Competitive Factor MarketnFactor Markets with Monopsony PowernFactor Markets with Monopoly PowerChapter 14Slide 3Competitive Factor MarketsnCharacteristics1) Large number of sellers

2、 of the factor of production2) Large number of buyers of the factor of production3) The buyers and sellers of the factor of production are price takersChapter 14Slide 4Competitive Factor MarketsnDemand for a Factor Input When Only One Input Is VariablelDemand for factor inputs is a derived demandude

3、rived from factor cost and output demandChapter 14Slide 5Competitive Factor MarketsAssumeuTwo inputs: Capital (K) and Labor (L)uCost of K is r and the cost of labor is wuK is fixed and L is variableDemand for a Factor Input WhenOnly One Input Is VariableChapter 14Slide 6Competitive Factor MarketslPr

4、oblemuHow much labor to hireDemand for a Factor Input WhenOnly One Input Is VariableChapter 14Slide 7Competitive Factor MarketsnMeasuring the Value of a Workers OutputlMarginal Revenue Product of Labor (MRPL)lMRPL = (MPL)(MR)Demand for a Factor Input WhenOnly One Input Is VariableChapter 14Slide 8Co

5、mpetitive Factor MarketsnAssume perfect competition in the product marketlThen MR = PDemand for a Factor Input WhenOnly One Input Is VariableChapter 14Slide 9Competitive Factor MarketsnQuestionlWhat will happen to the value of MRPL when more workers are hired?Demand for a Factor Input WhenOnly One I

6、nput Is VariableChapter 14Slide 10Marginal Revenue ProductHours of WorkWages($ perhour)MRPL = MPLx PCompetitive Output Market (P = MR)MRPL = MPL x MRMonopolistic Output Market(P w (the marginal cost of hiring a worker): hire the workerlIf MRPL w: hire less laborlIf MRPL = w: profit maximizing amount

7、 of laborDemand for a Factor Input WhenOnly One Input Is VariableChapter 14Slide 12w*SLIn a competitive labor market, a firm faces a perfectly elastic supply of laborand can hire as many workers as it wants at w*.Hiring by a Firm in theLabor Market (with Capital Fixed)Quantity of LaborPrice ofLaborW

8、hy not hire fewer or more workers than L*.MRPL = DLL*The profit maximizing firm willhire L* units of labor at the point where the marginal revenue productof labor is equal to the wage rate.Chapter 14Slide 13Competitive Factor MarketsnIf the market supply of labor increased relative to demand (baby b

9、oomers or female entry), a surplus of labor would exist and the wage rate would fall.nQuestionlHow would this impact the quantity demanded for labor?Demand for a Factor Input WhenOnly One Input Is VariableChapter 14Slide 14A Shift in the Supply of LaborQuantity of LaborPrice ofLaborw1S1MRPL = DLL1w2

10、L2S2Chapter 14Slide 15Competitive Factor MarketsnComparing Input and Output Marketsproduction of MC MPMP MRMR)(MPMRP workersofnumber maximizingprofit at and MR)(MP(MRPLLLLLLwwwwChapter 14Slide 16Competitive Factor MarketsnComparing Input and Output MarketslIn both markets, input and output choices o

11、ccur where MR = MCuMR from the sale of the outputuMC from the purchase of the inputChapter 14Slide 17Competitive Factor MarketsnScenariolProducing farm equipment with two variable inputs:uLaboruAssembly-line machinerylAssume the wage rate fallsDemand for a Factor Input WhenSeveral Inputs Are Variabl

12、eChapter 14Slide 18Competitive Factor MarketsnQuestionlHow will the decrease in the wage rate impact the demand for labor?Demand for a Factor Input WhenSeveral Inputs Are VariableChapter 14Slide 19MRPL1MRPL2When two or more inputs arevariable, a firms demand for one inputdepends on the marginal reve

13、nue product of both inputs.Firms Demand Curve for Labor(with Variable Capital)Hours of WorkWages($ perhour)051015204080120160When the wage rate is $20, A represents one point on the firmsdemand for labor curve.When the wage rate falls to $15, theMRP curve shifts, generating a newpoint C on the firms

14、 demand forlabor curve. Thus A and C areon the demand for labor curve, butB is not.DLABCChapter 14Slide 20nAssume that all firms respond to a lower wagelAll firms would hire more workers.lMarket supply would increase.lThe market price will fall. lThe quantity demanded for labor by the firm will be s

15、maller.Competitive Factor MarketsIndustry Demand for LaborMRPL1The Industry Demand for LaborLabor(worker-hours)Labor(worker-hours)Wage($ perhour)Wage($ perhour)05101505101550100150L0L2DL1Horizontal sum ifproduct priceunchanged120MRPL2L1IndustryDemandCurveDL2FirmIndustryChapter 14Slide 22The Industry

16、 Demand for LabornQuestionlHow would a change to a non-competitive market impact the derivation of the market demand for labor?Chapter 14Slide 23The Demand for Jet FuelnObservationslJet fuel is a factor (input) costlCost of jet fuelu1971-Jet fuel cost equaled 12.4% of total operating costu1980-Jet f

17、uel cost equaled 30.0% of total operating costu1990s-Jet fuel cost equaled 15.0% of total operating costChapter 14Slide 24The Demand for Jet FuelnObservationslAirlines responded to higher prices in the 1970s by reducing the quantity of jet fuel usedlTon-miles increased by 29.6% & jet fuel consum

18、ed rose by 8.8%Chapter 14Slide 25The Demand for Jet FuelnObservationslThe demand for jet fuel impacts the airlines and refineries alikelThe short-run price elasticity of demand for jet-fuel is very inelasticChapter 14Slide 26Short-run Price Elasticityof Demand for Jet FuelAmerican-.06Delta-.15Contin

19、ental-.09TWA-.10Northwest-.07United-.10AirlineElasticityAirlineElasticityChapter 14Slide 27The Demand for Jet FuelnQuestionlHow would the long-run price elasticity of demand compare to the short-run?Chapter 14Slide 28The Short- and Long-RunDemand for Jet FuelQuantity of Jet FuelPriceMRPLRMRPSRChapte

20、r 14Slide 29Competitive Factor MarketsnThe Supply of Inputs to a FirmlDetermining how much of an input to purchaseuAssume a perfectly competitive factor marketSMarket Supplyof fabricA Firms Input Supply in aCompetitive Factor MarketYards ofFabric (thousands)Yards ofFabric (thousands)Price($ peryard)

21、Price($ peryard)DMarket Demandfor fabric100ME = AE1010Supply ofFabric Facing Firm50Demand for FabricMRPObservations1) The firm is a price taker at $10.2) S = AE = ME = $103) ME = MRP 50 unitsChapter 14Slide 31Competitive Factor MarketsnThe Market Supply of InputslThe market supply for physical input

22、s is upward slopinguExamples: jet fuel, fabric, steellThe market supply for labor may be upward sloping and backward bendingChapter 14Slide 32Competitive Factor MarketsnThe Supply of LaborlThe choice to supply labor is based on utility maximizationlLeisure competes with labor for utilitylWage rate m

23、easures the price of leisurelHigher wage rate causes the price of leisure to increaseChapter 14Slide 33Competitive Factor MarketsnThe Supply of LaborlHigher wages encourage workers to substitute work for leisure (i.e. the substitution effect)lHigher wages allow the worker to purchase more goods, inc

24、luding leisure which reduces work hours (i.e. the income effect)Chapter 14Slide 34Competitive Factor MarketsnThe Supply of LaborlIf the income effect exceeds the substitution effect the supply curve is backward bendingChapter 14Slide 35Income Effect Substitution EffectBackward-Bending Supply of Labo

25、rHours of Work per DayWage($ perhour)Supply of Labor12CWorker chooses point A:16 hours leisure, 8 hour workIncome = $8016QPAw = $10Substitution and IncomeEffects of a Wage IncreaseHours of LeisureIncome($ perday)024082448020Bw = $20Suppose wages increase to $20 Substitution effectIncome effectIncrea

26、se wage to $20 worker chooses: 20 hour leisure, 4 hours work income = $80Chapter 14Slide 37Labor Supply for One- andTwo-Earner HouseholdsnFemale Percent of Labor Forcel1950 - 29%l1999 - 60%Elasticities of Labor Supply (Hours Worked)Heads HoursSpouses HoursHeads Hourswith Respect towith Respect towit

27、h Respect toGroupHeads WageSpouses WageSpouses WageUnmarried males.026(no children)Unmarried females.106(with children)Unmarried females.011(no children)One-earner family-.078(with children)One-earner family.007(no children)Two-earner family-.002-.086-.004(with children)Two-earner family-.107-.028-.

28、059(no children)Chapter 14Slide 39Equilibrium in aCompetitive Factor MarketnA competitive factor market is in equilibrium when the price of the input equates the quantity demanded to the quantity supplied.SL = AESL = AEDL = MRPLDL = MRPLP * MPLLabor Market EquilibriumNumber of WorkersNumber of Worke

29、rsWageWageCompetitive Output MarketMonopolistic Output MarketwCLCwMLMvMABChapter 14Slide 41Labor Market EquilibriumnEquilibrium in a Competitive Output MarketlDL(MRPL) = SLlwC = MRPLlMRPL = (P)(MPL)lMarkets are efficientnEquilibrium in a Monopolistic Output MarketlMR PlMRP = (MR)(MPL)lHire LM at wag

30、e wMlvM = marginal benefit to consumerslwM = marginal cost to the firmChapter 14Slide 42Labor Market EquilibriumnEquilibrium in a Competitive Output MarketlDL(MRPL) = SLlwC = MRPLlMRPL = (P)(MPL)lMarkets are efficientnEquilibrium in a Monopolistic Output MarketlProfits maximizedlUsing less than the

31、efficient level of inputChapter 14Slide 43nEconomic RentlFor a factor market, economic rent is the difference between the payments made to a factor of production and the minimum amount that must be spent to obtain the use of that factor.Equilibrium in aCompetitive Factor MarketChapter 14Slide 44Tota

32、l expenditure (wage) paidis 0w* x AL*Economic RentEconomic rent is ABW*BEconomic RentNumber of WorkersWageSL = AEDL = MRPLw*L*A0The economic rent associated with theemployment of labor is the excess of wages paid above the minimum amount neededto hire workers.Chapter 14Slide 45Economic RentnQuestion

33、lWhat would be the economic rent if SL is perfectly elastic or perfectly inelastic?Chapter 14Slide 46nLand: A Perfectly Inelastic SupplylWith land inelastically supplied, its price is determined entirely by demand, at least in the short run.Equilibrium in aCompetitive Factor MarketChapter 14Slide 47

34、EconomicRents1EconomicRents2Land RentNumber of AcresPrice($ peracre)Supply of LandD2D1Chapter 14Slide 48Pay in the MilitarynDuring the Civil War 90% of the armed forces were unskilled workers involved in ground combat.nToday, only 16% are unskilled workers involved in ground combat.Chapter 14Slide 4

35、9Pay in the MilitarynShortages of skilled personnel has occurred? Why?lHint: If there is a shortage, the wage must be below the?Chapter 14Slide 50The Shortage ofSkilled Military PersonnelNumber of Skilled WorkersWageSLDL = MRPLw*w0ShortageChapter 14Slide 51Pay in the MilitarynMilitary pay is based o

36、n years of service not MRP.nMRP increases and the private sector pay is greater than military pay.nMany leave the military.Chapter 14Slide 52Pay in the MilitarynSolutionlSelective reenlistment bonuseslBase pay on MRPChapter 14Slide 53Factor Markets with Monopsony PowernAssumelThe output market is pe

37、rfectly competitive.lInput market is pure monopsony.Chapter 14Slide 54SL = Average Expenditure (AE)MarginalExpenditure (ME)Why is marginal expendituregreater than SL?D = MRPLMarginal and Average ExpenditureUnits of InputPrice(per unitof input)01234655101520w* = 13L*wcLcCChapter 14Slide 55Factor Mark

38、ets with Monopsony PowernExamples of Monopsony PowerlGovernmentuSoldiersuMissilesuB2 BomberslNASAuAstronautslCompany townChapter 14Slide 56Monopsony Power inthe Market for Baseball PlayersnBaseball owners created a monopsonistic cartellReserve clause prevented competition for playersl1975-Free agenc

39、y after six yearsl1969-Average salary was $42,000 ($200,000 in 1999 dollars)l1997-Average salary was $1,383,578Chapter 14Slide 57nBaseball owners created a monopolistic cartell1975 salaries were 25% of team expendituresl1980 salaries were 40% of team expendituresMonopsony Power inthe Market for Base

40、ball PlayersChapter 14Slide 58Teenage Labor Marketsand the Minimum WagenWhen the minimum wage rose in New Jersey in 1992 from $4.25 to $5.05, a survey conducted found a 13% increase in employment.Chapter 14Slide 59nExplanationslReduction in fringe benefitslLower pay for more productive workerslMonop

41、sony marketTeenage Labor Marketsand the Minimum WageChapter 14Slide 60nFindingslNone of the explanations are validated by the survey resultslIndicates of the need for further studyTeenage Labor Marketsand the Minimum WageChapter 14Slide 61Factor Markets with Monopoly PowernJust as buyers of inputs c

42、an have monopsony power, sellers of inputs can have monopoly power.nThe most important example of monopoly power in factor markets involves labor unions.Chapter 14Slide 62SLDLMRWhen a labor union is a monopolist, it chooses among points on the buyersdemand for labor curve.Monopoly Power of Sellers o

43、f LaborNumber of WorkersWageperworkerAL*w*The seller can maximize the number of workershired, at L*, by agreeing that workers will work at wage w*.Chapter 14Slide 63EconomicRentw1L1The quantity of labor L1 that maximizesthe rent that employees earn is determinedby the intersection of the marginal re

44、venueand supply or labor curves; union membersreceive a wage rate of w1.SLDLMRMonopoly Power of Sellers of LaborNumber of WorkersWageperworkerAL2w2Finally, if the union wishes to maximize totalwages paid to workers, it should allow L2union members to be employed at a wagerate of w2 because the margi

45、nal revenueto the union will then be zero.L*w*Chapter 14Slide 64nThe primary determinant of controlling wage and economic rent is controlling the supply of laborFactor Markets with Monopoly PowerChapter 14Slide 65nA Two-Sector Model of Labor EmploymentlUnion monopoly power impacts the nonunionized p

46、art of the economy.Factor Markets with Monopoly PowerChapter 14Slide 66Wage Determination inUnionized and Nonunionized SectorsNumber of WorkersWageperworkerDUDNUDLSLw*ULwUWhen a monopolistic unionraises the wage rate in theunionized sector of theeconomy from w* to wU, employment in that sector falls

47、.For the total supply of labor toremain unchanged, the wage in the nonunionized sectormust fall from w* to wNU.MULwNUChapter 14Slide 67nBilateral MonopolylMarket in which a monopolist sells to a monopsonist.Factor Markets with Monopoly PowerChapter 14Slide 68Bilateral MonopolyNumberof WorkersWageper

48、workerDL = MRPLMR510152025102040SL = AEME2519WagePossibilitieswCChapter 14Slide 69Bilateral MonopolyNumberof WorkersWageperworkerDL = MRPLMR510152025102040SL = (AE)ME2519wCnObservationslHiring without union monopoly poweruMRP = ME at 20 workers and w = $10/hrlUnions objectiveuMR = MC at 25 workers a

49、nd w = $19/hrChapter 14Slide 70Bilateral MonopolynWho Will Win?lThe union will if its threat to strike is credible.lThe firm will if its threat to hire non-union workers is credible.lIf both make credible threats the wage will be at wc.Chapter 14Slide 71The Decline of Private Sector UnionismnObserva

50、tionslUnion membership and monopoly power has been declining.lInitially, during the 1970s, union wages relative to nonunion wages fell.Chapter 14Slide 72nObservationslIn the 1980s union wages stabilized relative to non-union wages.lIn the 1990s membership has been falling and wage differential has r

51、emained stable.The Decline of Private Sector UnionismChapter 14Slide 73nExplanationlThe unions have been attempting to maximize the individual wage rate instead of total wages paid.lThe demand for unionized employees has probably become increasingly elastic as firms find it easier to substitute capi

52、tal for skilled labor.The Decline of Private Sector UnionismChapter 14Slide 74Wage Inequality-HaveComputers Changed the Labor Market?n1950 - 1980lRelative wage of college graduates to high-school graduates hardly changedn1980-1995lThe relative wage grew rapidlyChapter 14Slide 75Wage Inequality-HaveC

53、omputers Changed the Labor Market?nIn 1984, 25.1% of all workers used computersn1993 - 46.6%n1999 - nearly 60%Chapter 14Slide 76Wage Inequality-HaveComputers Changed the Labor Market?nPercent change in use of computers lCollege degreesu1984 - 1993 - 42 to 70%lLess than high school degreeu5 to 10%lWith high school degreeu19 to 35%Chapter 14Slide 77Wage Inequality-HaveComputers Changed the Labor Market?nGrowth in wages - 1983 - 1994lCollege graduates using computers - 11%lNon-computer users - less than 4%Cha