Unit 4: Factor Markets
Duration of Days: 14
Students will know resource pricing, marginal productivity theory, derived demand, marginal revenue product, marginal resource cost, determinants and elasticity of resource demand, least-cost and profit-maximizing resource combinations, income distribution, labor markets, wage determination, monopsony, unions, and bilateral monopoly.
Students will apply supply and demand to factor markets, calculate MRP and MRC, determine optimal hiring decisions, compare labor market models, analyze wage differences, and evaluate the effects of unions and monopsony power.
Students will demonstrate understanding through labor market models, written responses, discussion, practice problems, quizzes, graphing activities, and unit-level assessment.
| Lesson # | Lesson Title | Duration of Days |
|---|---|---|
| 1 | Introduction to Factor Markets and Derived Demand | 3 |
| 2 | MRP, MRC, and Firm Hiring Decisions | 4 |
| 3 | Resource Demand and Resource Combinations | 3 |
| 4 | Labor Markets, Wages, and Market Power | 3 |
| 5 | Unit Synthesis and Assessment | 1 |