1.8 — Factor Markets — Class Content

Meeting Date

Thursday, February 16, 2023

Upcoming Assignment

Problem Set 1 (1.1-1.8) is due by 11:59 PM Thursday February 23 on Blackboard Assignments.

Overview

Today we cover markets for factors of production (e.g. land, labor, capital, supplies, etc). We discuss what determines prices in these markets, and how they vary with monopoly power and monopsony power (a buyer with market power).

We focus primarily on labor markets as the main factor market, and all of us are participants in labor markets. However, the analysis can be applied to any market for an input to production.

Readings

Practice

Today you will be working on practice problems:

Slides

Below, you can find the slides in two formats. Clicking the image will bring you to the html version of the slides in a new tab. The lower button will allow you to download a PDF version of the slides.

Tip

You can type h to see a special list of viewing options, and type o for an outline view of all the slides.

I suggest printing the slides beforehand and using them to take additional notes in class (not everything is in the slides)!

1.8-slides

Download as PDF

Assignments

Problem Set 1 Due Thursday February 23

Problem Set 1 (1.1-1.8) is due by 11:59 PM Thursday February 23 on Blackboard Assignments.