Microeconomics,, 16th Canadian Edition

choose to “spend” their higher wages on more leisure rather than just on more goods and services. The economy’s total supplies o ...

The Supply of Factors to a Particular Industry Industry Most factors have many uses. A given piece of land can be used to grow a ...

changes in its price, is said to be immobile. It will be in inelastic supply in any one use because even a large increase in the ...

one crop can be harvested and a totally different crop can be planted. A farm on the outskirts of a growing city can be sold for ...

their labour services to an employer. When a worker who is employed by a firm producing men’s suits in Montreal decides instead ...

decisions about what they will do with their labour services, they will not always move to a different job just because they cou ...

The Supply of Factors to a Particular Firm Firm Most firms employ only a tiny proportion of the economy’s total supply of each f ...

Figure 13-2 Demand and Supply Shifts in a Competitive Factor Market 13. 3 Factor Markets in Action Once you have mastered the ba ...

equilibrium is determined by and The equilibrium factor price is the equilibrium quantity of the factor is and total factor inco ...

earned by the factor may rise or fall, depending on the elasticity of demand for the factor.) Though the supply of any factor to ...

incentives to change occupations—that is, until wages were equalized in all uses. In fact, however, wage differentials obviously ...

Figure 13-3 The Creation and Erosion of Temporary Factor-Price Differentials lessen and eventually to disappear. This adjustment ...

rise, factors leave the railway industry and enter the airline industry. This flow of factors is a leftward shift of to and a mo ...

intrinsic differences in the factors themselves and, for labour, by differences in the cost of acquiring skills and by different ...

The long and costly training required to become a surgeon reduces the supply of surgeons relative to many other occupations and ...

force chemists’ wages up in industry and down in academia until the two types of jobs seemed equally attractive on balance. Comp ...

been designed to speed this adjustment and, in the process, reduce the underlying discriminatory forces. These policies have bee ...

To illustrate the nature of the problem encountered by such legislation, consider the example of two types of construction worke ...

Economic Rent One of the most important concepts in economics is that of economic rent A mobile factor must earn a certain amoun ...

000 annually. The $300 000 of capital is thus earning economic rent equal to $15 000 per year. In this case, rent is just anothe ...