what is marginal physical product
amount of output provided by one worker
marginal revenue product (MRP)
total revenue from hiring one more worker
how to work out MRP
marginal revenue x marginal physical product
what decision is taken by a form over how much labour to hire
if their MRP is at least equal to the cost of hiring them
diagram for demand for labour
what would shift Dl to the right
worker productivity increasing
demand for output
what would shift Dl to left
less worker productivity
what would cause a movement along
change in wage rate of number of workers employed
analysis for the demand for labour diagram
what makes demand for labour price inelastic
evaluation of the MRp or demand for labour
diagram for supply of labour
i got can every worker not choose any point on the diagram
analysis of the supply of labour diagram
evaluation of supply of labour
supply of labour in competitive markets diagrams
analysis for supply of labour diagram in competitive markets
what would cause a shift
net advantages
pecuniary benefits + non pecuniary- disutility
pecuniary benefits
financial/ monetary benefits such as wages, bonuses
non pecuniary benefits
non financial benefits including fringe benefits such as company car
disutility of work
factors that can reduce a workers utility such as unpleasant conditions
factors that may cause the supply of labour to be more price inelastic
minimum wage
a legally binding min price for labour
