Temple University
Department of Economics

Economics 201
Microeconomics and Behavior

Labor - Chapter 14



A. Labor markets in the short run

  Product Market
Perfect Competition Imperfect Competition
Perfectly Competitive VMP = w MRP = w
Imperfect Competition VMP = MFC MRP = MFC

B. Why does the bricklayers wage keep rising: She can work at most 24 hours per day and there are no productivity gains.

C. In the long run; we are all dead.

D. Is leisure Giffen

E. What do minimum wage laws do?