Unit 4: Factor Markets

Can include, but is not limited to:
Resource pricing, marginal productivity theory of resource demand, MRP=MRC, determinants of resource demand (changes in product demand, changes in productivity, changes in the price of other resources), elasticity of resource demand, optimal combination of resources (the least-cost rule, the profit maximizing rule) marginal productivity theory of income distribution, labor, wages, and earnings, real wages and productivity, purely competitive labor market (market demand and supply for labor and equilibrium), monopsony model, union models (demand-enhancement model, exclusive/craft union model, inclusive/industrial union model), bilateral monopoly

Can include, but is not limited to:
As future workers in an ever-changing global economy, understanding the rationale behind the resource market and the labor market is critical. Through this unit, students will apply the principles of supply and demand to the markets for the factors of production. Students will also utilize the MRP=MRC rule towards understanding the demand for and price of land, labor, and capital.

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