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Definition
| The demand for a resource that depends on the demand for the products it helps to produce |
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Term
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Definition
| the change in a firm's total revenue when it employs 1 additional unit of a resource; equal to the change in total revenue divided by the change in the quantity of the resource employed |
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| Marginal Physical Product |
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Definition
| The additional output produced when 1 additional unit of a resource is employed; equal to the change in total product divided by the change in the quantity of a resource employd |
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Definition
| The amount the total cost of employing a resource increases when a firm employs 1 additional unit of the resource; equal to the change in the total cost of the resource divided by the change in the quantity of the resrource employed |
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Term
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Definition
| The principle that to maximize profit a firm should employ the quantity of a resource at which its marginal revenue product is equal to its marginal resource cost, the latter being the wage rate in a purely competitive labor market |
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Term
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Definition
| A change in the quantity demanded of a consumer good that results from a change in its relative expensiveness caused by a change in the product's price. The effect of a change in the price of a resource on the quantity of the resource employed by a firm, assuming no change in its output |
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Term
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Definition
| The situation in which an increase in the price of one input will increase a firm's production costs and reduce its level of output, thus reducing the demand for other inputs; conversely for an increase in the price of the input |
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Term
| Marginal Productivity Theory of Income Distribution |
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Definition
| The contention that the distribution of income is equitable when each unit of each resource receives a money payment equal to its marginal contribution to the firm's revenue |
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Term
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Definition
| A measure of average output or real output per unit of input. productivity of labor is determined by dividing real output by hours of work |
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Definition
| A market structure in which there is only a single buyer of a good, service, or resource |
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Term
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Definition
| Unions can increase the demand for their labor by increasing the demand for the goods/services they help produce, increasing the demand for union labor by altering the price of other inputs, and increasing the demand for their labor by supporting policies that will reduce or hold down the price of a complementary resource |
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Term
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Definition
| The practice of a labor union of restricting the supply of skilled union labor to increase the wages received by union members; the policies typically employed by a craft union |
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Term
| Inclusive (industrial) Union |
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Definition
| The practice of a labor union including as members all workers employed in an industry |
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Definition
| A market in which there is a single seller and a single buyer |
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Definition
| The knowledge and skills that make a person productive |
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Term
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Definition
| The price paid for the use of land and other natural resources, the supply of which is perfectly inelastic |
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Term
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Definition
| The interest rate expressed in terms of annual amounts currently charged for interest and not adjusted for inflation |
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Term
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Definition
| The interest rate expressed in dollars of constant value (adjusted for inflation) and equal to the nominal interest rate less the expected rate of inflation |
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Term
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Definition
| The return to the resource entrepreneurial ability; total revenue minus total cost |
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