Perfectly Competitive Resource Market Profit Maximization

review of profit maximizing behavior in a perf. comp. resource market

Category:

Education

Tags:

• economics
• micro
• macro
• perfect
• competitive
• wage
• labor
• price
• ap
• exam
• review

[mapleleaf11]

in the foirms side mr = d

so horizontal curve isnt the supply curve but the demand curve

[APECONREVIEWER]

Again, this is the resource (factor) market, not the product market. `

[mapleleaf11]

and ur MC = SUPPLY ,yani mc is THE supply curve

[APECONREVIEWER]

I don't think you are understanding that this is about the "resource" market, not the "product" market.

[mapleleaf11]

i dont get why would firms supply more wages as they hire more workers.

[APECONREVIEWER]

because they need to increase the incentive to attract workers away from other industries and into this industry. Each successive worker they want to attract is giving up more elsewhere and therefore will require a higher wage in order to be enticed to a new industry

[KcKiller101]

I am currently learning this on an online class (i feel like I am learning this on my own). I was bored and decided to watch a video about this subject. Thanks for teaching more of it.

[scenesonn]

From what I was taught -- and perhaps I'm wrong -- the demand curve for a firm is equal to price (MR=D=AR=P) since individual firms in a perfectly competitive market are price takers rather than price dictators. The demand curve is perfectly elastic because if a firm decides to sell its product at any higher price, consumers will flock to the next supplier.

[8644371]

@APECONREVIEWER

Now with illegal workers: The same principle would apply, right?

If I offer better working conditions but NOT higher wages, they should be more incentivized to join me, right?

[8644371]

For the industry: In locating the optimal wage price, are we walking UP the Supply Curve or walking DOWN the Demand Curve?

[8644371]

Is it Output divided by Input?

[8644371]

How do I calculate the marginal revenue product?

Is is calculable? Is it visceral?

[onqsfe]

shut the fuck up you cracker hacker your a poo poo head and you smell like donkey dung foo and i dont know what the fuck your talking about industry i dont have a problem i made a 350k last year bozo how much did you make fag boy gay toy

[carlospfontes]

Thanks man!

Good job!