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ACDC3 (The resource market (market (types (perfect competition (features…
ACDC3
The resource market
market
types
monopsony
features
one firm hiring workers
workers are relatively immobile
firm is wage maker
perfect competition
features
many workers with identical skills
wage is constsnt
many small firms hiering workers
firm
concepts
marginal resource cost (MRC)
change in TC/change in inputs
the additional cost of an additional resource (worker)
MRP
the additional revenue generated by an additional resource (worker)
change in TR/change in inputs
graph
horizontal supply
S=MRC=wage
downward sloping demand
D=MRP
concepts
supply
olika kvantiteter av individer som vill och kan sälja sin arbetskraft
law of supply
shifters
number of qualified workers
change in government regulation
training of CBT
personal values regarding leisure time and societal roles
women after WW2
demand
olika kvantiteter av arbetare som företag vill och har möjlighet till att anställa
law of demand
shifters
change in the demand for the product
changes in productivity of the resource
changes in price in related resorces
resorces
combining resorces
profit maximizing rule
imperfections
regulations
minimum wage
Resons
insufficient/misleading job information
geographic immobility
unions
wage discrimination
market failures
definition
a situation in which the free-market system fails to satisfy society´s wants
private markets do not efficiently bring about the allocation of resources
types of market faliure
public goods
free rider problem
little or no opportunity to make a profit
users benefit without paying
solution
find new ways to punish free-riders
use tax to provide service to everyone
kriteria
nonexclusion
cant exclude people from consuming the good
shared consumption/non rivalry
the consumption by one actor dosnt effect future consumtion
decisions
demand
marginal social benefit (MSB)
supply
marginal social cost (MSC)
externalities
the positive (benefit)or negative (cost) effect on a third party
the free market fails to account for theses effects
the tragedy of the commons
pollution because there is no monetary incentive to use the efficient
examnple
climate change
overfiishing
monopolies
inefficient
antitrust law
income inequality
lorenz curve
gini coefficient
size of bannana/ size of banan + area b
taxes
progressive
the more you earn the higher percent you pay
income tax
propotional
same percent of income
regressive
larger percentage from low income groups
sales taxes