Labour markets and intervention
| English | 中文 | Pinyin |
|---|---|---|
| derived demand/dɪˈraɪvd dɪˈmænd/ | 派生需求 | pài shēng xū qiú |
| monopsony/ˈmɒnəʊpsəni/ | 买方垄断 | mǎi fāng lǒng duàn |
A decision you can investigate
- A workshop considers hiring another worker who can add output.
- The hiring decision depends on the revenue that output adds and the worker's cost.
Build the explanation
- Derived demand 派生需求 links labour demand to product demand. Marginal revenue product equals marginal product multiplied by marginal revenue.
- Wage differences can reflect skill, productivity, scarcity, bargaining power and discrimination.
Match the terms to their precise meanings.
Use these definitions in the particular context of Labour markets and intervention.
Work through the evidence
- An extra worker adds 8 units sold at a constant 12 yuan per unit, so MRP = 8 × 12 = 96 yuan.
- If the relevant wage is 80 yuan, the simplified model supports hiring; other employment costs still matter.
What is the worker's marginal revenue product in this case?
An extra worker adds 8 units sold at a constant 12 yuan per unit, so MRP = 8 × 12 = 96 yuan. If the relevant wage is 80 yuan, the simplified model supports hiring; other employment costs still matter.
Test the limits
- A minimum wage can have different employment effects under competitive labour markets and monopsony 买方垄断.
- Do not apply one diagram to every institution: state bargaining, market structure and enforcement assumptions.
Which caution belongs to this particular task?
A minimum wage can have different employment effects under competitive labour markets and monopsony. Do not apply one diagram to every institution: state bargaining, market structure and enforcement assumptions.
The explanation in this lesson makes a conditional claim; relevant context and evidence still matter.
Do not apply one diagram to every institution: state bargaining, market structure and enforcement assumptions.
Apply and explain your answer
- What is the worker's marginal revenue product in this case?
- 96 yuan for the period used in the calculation.
Choose the two statements supported by this lesson.
The concept and worked evidence support these claims; the stated limits rule out the universal shortcut.
Use the terms precisely
- derived demand: Demand for an input arising from demand for its output.
- monopsony: A market with a dominant buyer.
An extra worker adds 8 units sold at a constant 12 yuan per unit, so MRP = 8 × 12 = 96 yuan. If the relevant wage is 80 yuan, the simplified model supports hiring; other employment costs still matter.
A minimum wage can have different employment effects under competitive labour markets and monopsony. Do not apply one diagram to every institution: state bargaining, market structure and enforcement assumptions.
Derived demand links labour demand to product demand. Marginal revenue product equals marginal product multiplied by marginal revenue.