|
Economics Help Resources
|
|
Demand For Labour
Marginal Revenue Product of Labour ( MRP)
Definition: This is the extra revenue a firm gains from employing an extra worker
Marginal Physical Product (MPP)
Definition: This is the extra output that an extra worker produces .
- Due to the law of diminishing returns there is a diminishing marginal return to an increase in the number of workers
Marginal Revenue (MR)
This is the revenue that a firm gains from selling the last unit of output
Therefore the Demand for Labour depends upon
- The productivity of labour MPP
- The demand for the good
- The wage rate, strictly this is the MC
Diagram of: Wage Determination in Competitive Labour Markets
Essays and Revision Notes on Labour Markets
- Labour Markets home
- Demand for Labour
- Supply of Labour
- Wage Determination
- Labour Market Imperfections
Flexible Labour Markets
- Flexible Labour Markets
- Adv and Disadvantages of Flexible Labour Markets
- Increasing Labour Market Flexibility
- Changes UK Labour Markets
- Participation Rate
- Trades Unions
- Ageing Population
Minimum Wages