Course Objectives for Chapter 17: The Markets for Labor and Other Factors of Production
Students should be able to:
· Explain how firms choose the profit-maximizing quantity of workers to employ.
· Explain how people choose the quantity of labor to supply.
· Explain how equilibrium wages are determined in labor markets.
· Use demand and supply analysis to explain how compensating differentials, discrimination, and labor unions cause wages to differ.
· Discuss the role personnel economics can play in helping firms deal with human resources issues.
· Show how equilibrium prices are determined in the markets for capital and natural resources.