Unit 5: Factor Market

Unit 5: Factor Market

Steven M. Reff
Economics Lecturer
University of Arizona
(2007 - 2016)
The 2015 University of Arizona
Five-Star Faculty Award

Principles and
Models

5.1 Introduction to Factor Markets

5.2 Changes in Factor Demand and Factor Supply

Class Starter 3-by-3 eVideos (3 min. and 3 multiple choice questions)

Labor Market--MRP = MFC, Part I (3:45)
Labor Market--MRP = MFC, Part II (3:50)
Marginal Product (MP) and Total Product (TP) Graph (3:02)
Marginal Product (MP) and Total Product (TP) Graph (3:53)

6 - 8 Class Periods

10 - 13% of exam

Resource Alignment with the Microeconomics Classroom

NOTE: This website is not a College Board sponsored website. Everything on this
website can be used by teachers or students to get a better understanding of their
college-level Microeconomics and Macroeconomics courses.

Reffonomics eTextbook: http://reffonomics.com/CostsIII.html

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Sign Guestbook

V iew Guestbook Signings

Sign Guestbook

V iew Guestbook Signings

5.4 Monopsonistic Markets

Interactive Lessons, Movable Graphs, or Drawable Graphs:

Production Choices and
Behavior

Interpretation

Graphing and
Visuals

Reffonomics college-level eTextbook: http://reffonomics.com/1.html
Reffonomics high school eTextbook: http://reffonomics.com/hs.html
Reffonomics eVideos for Microeconomics (3 minutes + 3 multiple choice questions): http://reffonomics.com/VideosReffonomicsMicroeconomics
Reffonomics eVideos for Macroeconomics (3 minutes + 3 multiple choice questions): http://reffonomics.com/VideosReffonomicsMacroeconomics
Reffonomics Financial Literacy Activities eWorkbook: http://reffonomics.com/FinancialLiteracy.html
Reffonomics for Teachers and Students eWorkbook: http://reffonomics.com/teachers.html
Reffonomics All the Graphs You "Need" to Know eWorkbook: http://reffonomics.com/graphing.html
Reffonomics Cell Phone Graphing eCellbook: http://reffonomics.com/cellgraphing.html
FRQs for Microeconomics eWorkbook: http://reffonomics.com/FRQMicroReview.html
FRQs for Macroeconomics eWorkbook: http://reffonomics.com/FRQMacroReview.html

"Free" Quick-Reference Resources by Reffonomics.com:

Production Choices and
Behavior

Economics Baseball Game: Perfect Competition and Monopsony Labor Market

All the Graphs You "Need" to Know: P erfectly Competitive Labor Market

Reffonomics eTextbook: http://reffonomics.com/Monopsony.html

All the Graphs You "Need" to Know: M onopsony

Cell Phone -- Graphing PPF Interactive:

Monopsony with Questions: http://reffonomics.com/c14 .html

Monopsony without Questions: http://reffonomics.com/cc14 .html

Monopsony without Questions (2019): http://reffonomics.com/ccc14 .html

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5.3 Profit-Maximizing Behavior in Perfectly Competitive Factor Markets

Interpretation

2011 FRQ #2

2010 FRQ #2

2007 FRQ #2

(#2 Perfectly Competitive Labor Market, Wage graph for Firm)

(#2 Perfectly Competitive Labor Market/Firm, MP, MRP)

(#2 Perfectly Competitive Labor Market/Firm, MRP = MFC

Check Your Knowledge (using College Board® FRQs)

Monopsony Lesson and Graphing

Grokkingecon Activities:

Activity 9