Learning objectives
Explain the demand for labour as a derived demand, calculate marginal revenue product (MRP = MPP × MR) and derive a firm's demand curve for labour from it
Analyse the factors that shift the demand for labour, or cause movements along it, in a firm or occupation
Explain the wage and non-wage factors affecting the supply of labour to a firm or occupation and the causes of shifts in supply
Analyse wage determination in a competitive labour market and explain how wage differentials arise
Analyse how trade unions, a national minimum wage and monopsony employers affect wages and employment
Define transfer earnings and economic rent, show them on a labour market diagram and explain what decides their size in an occupation
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