Today we will continue to study factor markets. We will focus on the decision firms must make about how much and what combination of land, labor, and capital to hire given the prices of these resources. You should read the text chapter identified below in the homework section, watch the related videos for help in understanding this material, do the activities identified, in the homework section and be prepared for the Problem of the Day. This page contains all the information you need for today's class. Use the table of contents on the right to help you navigate.
Read McConnell and Brue (Chapter 26).
Do Activities 50-53.
Problem of the Day: You will work cooperatively with your partner to construct a response to the following prompt.
Define each of the following terms: marginal product, marginal revenue product, and marginal resource cost.
Explain why the marginal revenue product decreases as extra units of labor (or any other factor) are added to the production process.
Lecture
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