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PERSONAL INCOME: The total income received by the members of the domestic household sector, which may or may not be earned from productive activities during a given period of time, usually one year. The primary use of personal income is to measure the income actually paid out to the household sector. After adjusting for income taxes, personal income forms the basis for consumption expenditures on gross domestic product.
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Lesson 23: Factor Market Equilibrium | Unit 4: Monopsony
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Page: 18 of 24
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- The primary condition for profit-maximization AND efficiency derived from the analysis of the firm's labor employment is:
- MRP = MFC > W
- As such, marginal revenue product (MRP) is also greater than the factor price (W).
- This means the market is NOT efficient.
- Consider the profit-maximizing employment of labor services illustrated in this diagram.
- Clearly wage paid in monopsony is lower and the quantity of factor services employed is less.
- The conclusion is that monopsony, like it's selling counterpart monopoly, is NOT efficient.
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AVERAGE FACTOR COST CURVE A curve that graphically represents the relation between average factor cost incurred by a firm for employing an input and the quantity of input used. Because average factor cost is essentially the price of the input, the average factor cost curve is also the supply curve for the input. The average factor cost curve for a firm with no market control is horizontal. The average revenue curve for a firm with market control is positively sloped.
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PINK FADFLY
[What's This?]
Today, you are likely to spend a great deal of time at the confiscated property police auction trying to buy either yellow cotton balls or a set of steel-belted radial snow tires. Be on the lookout for attractive cable television service repair people.
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The portion of aggregate output U.S. citizens pay in taxes (30%) is less than the other six leading industrialized nations -- Britain, Canada, France, Germany, Italy, or Japan.
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"If anything terrifies me, I must try to conquer it. " -- Francis Charles Chichester, yachtsman, aviator
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CLADR
Class Life Asset Depreciation Range
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