Summary
Summary labour economics
- Institution
- OCR
Summary of 1 pages for the course A2 Unit F583 - Economics of Work and Leisure at OCR (labour economics)
[Show more]
Seller
Follow
Content preview
A perfectly competitive labor market is like a perfectlycompetitive product market, but let's pretend we're talking
about pizza. Imagine having a certain number of workers, in this
case, cooks, producing a certain amount of output. For example,
we have one cook making five pizzas, two cooks making twelve
pizzas, and three cooks making sixteen pizzas. The wage for the
cooks is $20 and the price at which each pizza can be sold is
$10 each. The answer in this scenario was "three" workers.
• Number of workers: 1, 2, 3, 4, 5
• Output (in pizzas): 5, 12, 16, ?, ?
• Wage: $20
• Selling price: $10 per pizza
The decision to hire an additional worker is based on whether
their added revenue is greater than their wage. For example, if a
fourth cook would bring in an additional $10 in revenue but
cost $20 in wages, it would not be worth it to hire them. The
correct answer in this scenario was still "three".
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller vedant1353. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £6.57. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now