Microeconomics,, 16th Canadian Edition

exactly the reverse—and that wheat was expensive for other reasons entirely. The price of wheat was high, he said, both because ...

above what was necessary to keep it in its present use (what we now call economic rent). Later, two facts were realized that bro ...

Figure 13-4 The Determination of Rent in Factor Markets How Much of Factor Earnings Is Rent? In most cases, as in the three prev ...

The amount of a factor’s earnings that is economic rent depends on the mobility (and thus on the elasticity of supply) of the fa ...

payment to keep it in its present use. In this case, there are no transfer earnings and so the whole of the payment is economic ...

Various Perspectives on Economic Rent The proportion of a given factor payment that is economic rent varies from situation to si ...

As the perspective moves from a narrowly defined use of a factor to a more broadly defined use of a factor, the mobility of the ...

For example, Sidney Crosby would probably have chosen hockey over other alternatives even at a much lower salary. However, becau ...

A Final Word This chapter has examined the operation of factor markets. You should now be able to answer the questions we posed ...

determined by demand. Since there is little demand for the land, its rental price is low. Similarly, the land in downtown Toront ...

Summary ...

13.1 The Demand for Factors LO 1 A firm’s decisions on how much to produce and how to produce it imply demands for factors of pr ...

13.2 The Supply of Factors LO 2 The total supply of each factor is fixed at any moment but varies over time. The supply of labou ...

13.3 Factor Markets in Action LO 3, 4 Factor-price differentials often occur in competitive markets. Temporary differentials in ...

Key Concepts Derived demand for a factor Marginal product (MP) Marginal revenue product (MRP) Elasticity of factor demand Factor ...

Study Exercises MyLab Economics Make the grade with MyLab Economics™: All Study Exercises can be found on MyLab Economics™. You ...

Fill-in-the-Blank 1. Fill in the blanks to make the following statements correct. a. The MRP curve for a factor is the same as t ...

firm’s profits. The firm should hire (more/fewer/the same) hours of labour in order to maximize its profits. b. An excavation co ...

quite mobile between but less mobile between e. In general, the demand by most firms for factors of production is small relative ...

Fill in the blanks to make the following statements correct. a. Marginal revenue product is calculated by multiplying and. b. M ...