AP Economics – 12/13/19

I. Bellwork – Pg 704 FRQ #2

II.  Objectives

  • Distinguish between perfectly competitive and imperfectly competitive labor markets
  • Analyze and construct supply graphs for labor for firm and perfectly competitive and imperfectly competitive labor markets
  • Determine the point where workers will continued to be hired for perfectly competitive and imperfectly competitive labor markets

III.  Discussion Pages 710-712

A  Equilibrium in the Labor Market

  • Figure 71.3 p 710 Perfectly competitive –
  • Market Labor curve is horizontal   
  • Equilibrium Wage =MFCL
  • Hire until MRPL = Market Wage

B. When the Labor Market is Not Perfectly Competitive

C.  Equilibrium in the Imperfectly Competitive Labor Market

  • Hire until MRPL = MFCL
  • Figure 71.4 P. 711 (marginal factor cost of labor is higher than the market labor supply curve)
  • Figure 71.5 p 712 Equilibrium wage is less than MFCL

IV.  Classwork – 71.3 – See Module 71 Worksheets on iLearn

V.  Homework 71.4 Part 1 & 2


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Follow this blog

Get every new post delivered right to your inbox.




Skip to toolbar