There are factors that shape labor supply and demand.
Market wage rates are established.
Wage floors affect labor market outcomes.
In 2004, the CEO of Disney ended up with a huge amount of money.
A 10-year contract that could have paid him as much as $771 isn't related to his services.
There was a quantity of labor supplied.
A Nike endorsement contract is worth at least $90 million.
The president of the United States was paid less than half a million dollars.
The questions paid $19,000.
We can't explain the earnings disparity on the basis of willingness to work.
Will do anything for money.
A website designer needs money.
It will take part-time or consult to get it.
Have a car.
Josh is on or off campus.
Please call if you have any questions.
The ads clearly showed Josh and Danielle's willingness to work.
Although we don't know how much money they were asking for their talents, or whether they ever found jobs, we can be sure that they were prepared to take a job at some wage rate.
They wouldn't have paid for the ads in the "Jobs Wanted" column if it weren't for them.
They are willing to sell their time and talents to anyone who will pay the right price.
Their ability to work explicit offers is similar to someone who is looking for a job.
The 25,000 people who applied for jobs at Wal-Mart were willing to supply labor.
Explaining labor supply decisions is our first concern.
We would all be sleeping on the bus if they did.
Other motives must be present since most of us don't behave this way.
According to the News on the next page, MBA grads care more about their intrinsic satisfaction than their pay.
They get huge paychecks as well.
The amount of labor supplied is one of the reasons for the big paychecks.
People want more income because they are willing to work so many hours.
We need some time to recuperate from working.
We want to watch television, go to a soccer game, or enjoy other goods and services.
The more time we spend working, the more income we have but also less time to enjoy it.
All activities have an opportunity cost.
Individual labor supply curves are explained by the trade-off between labor and leisure.
He said there are 325 jobs.
The average pay for non-management positions is $10 a hour.
Permission was granted for this article to be reproduced.
The value of leisure and the desire for income affect the quantity of labor supplied.
There was a huge amount of labor in Chicago.
Only 12 percent of those questioned said they sphere first.
I don't think you should discount the pay News & World Report.
The amount of labor supplied depends on the satisfaction of the workers.
High wages and job satisfaction are two things that MBA grads work long hours for.
If there is a higher wage rate, we will give a larger quantity of labor.
This is reflected in the labor supply curve.
The labor supply curve can be reinforced with the changing value of income.
If you have bills to pay, those first few dollars earned on the job are very important.
Your most urgent needs will be satisfied as you work and earn more.
The same thing happens with labor supply.
Wages offered for more work lose some of their appeal if this happens.
Unless you are offered a higher wage rate, you may not be willing to work more hours.
As leisure time decreases, the opportunity cost of labor increases.
As a person works more hours, the marginal utility of income decreases.
Money isn't the only motivator for people to work.
Many parents forgo high-paying jobs in order to have more flexibility at home.
Volunteers don't need a paycheck to offer their services.
The challenge of highpaying jobs is more motivating than the money for many graduates of the business school.
People supply more labor when they are paid more.
lust for more income is the force that drives people up the labor supply curve.
Additional goods and services will eventually lose their appeal.
People with high incomes have a lot of toys.
Their leisure is increased by an increased wage rate.
While you might do cartwheels for $50 an hour, Bill Gates or Brad Pitt encourages people to work more hours.
Muhammad Ali once said he wouldn't do anything for leisure.
He didn't have to fight more to satisfy his income and consumption desires because of the added income from one championship fight.
Migrant workers, household help, and babysitters have to work long hours just to make ends meet.
An individual's labor-supply increased wage rate allows a curve because of the conflict between income and substitution.
The labor supply curve will be upward-sloping if substitution effects dominate.
People in six countries answered.
The exception is the backward-bending labor supply curves.
Americans like to have more leisure.
Americans choose added income if they have to choose between more leisure or more total quantity of labor.
Negative responses to higher wages are swamped by positive responses from the 150 million people who work in the U.S. labor market.
The labor supply curve doesn't mean that we'll all be working longer hours in the future.
Whenever one of the underlying factors of supply changes, it will.
The position and slope of the labor supply curve are determined by these shift factors.
The labor supply curve changes as time passes.
In 1890, the average worker in the U.S. worked 60 hours a week at a rate of 20 cents an hour.
People looking for jobs and employees looking for workers are included in the labor market.
If a higher wage is offered, the elasticity of labor tells us how much more labor will be available.
If the elasticity of labor is 0.2, a 10 percent increase in wage rates will cause a 2 percent increase in the quantity of labor supplied.
The responsiveness of workers to wage increases depends on labor supply.
Time is important for labor supply elasticity, as individuals can't always change jobs in a second.
Bill Gates or Britney Spears can choose to work more or less hours.
Most workers face more rigid choices.
They have to choose between working 8 hours a day, 5 days a week, or not working at all.
Only a few firms are willing to work during the hours of 11 A.M.
Adjustments in work hours can be limited to overtime work, secondary jobs, and vacation and retirement.
The labor supply may be altered by the number of family members sent into the labor force.
Students can often change their work hours.
When U.S. wages rise, the flow of immigrants into the U.S. labor market increases.
Employers are profit maximizers.
Firms enter factor markets to purchase labor, equipment, and other resources once they have identified the profit-maximizing rate of output.
The strawberry pickers are paid very low wages and only work part of the year.
The strawberry growers' greed can't be blamed for their plight.
Most strawberry growers would love to sell produced by these factors.
Growers would hire more pickers and pay them higher wages if they did.
Consumers aren't willing to buy more strawberries at higher prices, so the growers have to contend with that.
The growers can't afford to hire more pickers or pay them.
The higher the wage rate, the smaller the labor demanded.
There is a demand for 1 of the labor.
The law of demand is obeyed by the labor demand curve.
College students who major in engineering, math, or computer science are paid more than average earnings by occupation.
IT specialists benefit from the growing demand for Internet ser be obtained from the U.S. Bureau of vices, while philosophy majors suffer because the search for the meaning of life is not a Labor Statistics website.
Growers will plant more strawberries and hire more labor if there is an increase in demand.
The plight of the pickers isn't likely to improve until then.
The wage rate will affect the number of pickers hired.
The demand for labor looks similar to the demand for any good or service.
It doesn't tell us what wage rate will be paid.
We need to know what the shape and position of the labor demand curve is.
A strawberry grower will only hire another picker if he or she contributes more to output than he or she costs.
Each picker's job application will be evaluated in terms of their potential contribution to profits by the truly profitmaximizing grower.
The strawberry picker's contribution to output is easy to measure because of the number of boxes of strawberries he or she picks.
The grower can't afford to pay Marvin more than 5 boxes of strawberries for an hour's work; the grower won't pay Marvin more than he produces.
The majority of strawberry pickers don't want to work in strawberries.
We need to know what a box of strawberries is worth to find out how much cash he might be paid.
The market value of a box of strawberries is the price at which the grower can sell it.
Marvin's contribution can be measured by either the marginal physical product or the dollar value of that product.
Revenue associated with one additional unit of input is associated with the change in total labor.
Marvin's marginal revenue product is simply 5 boxes per hour, $2 per box, or $10 per hour if the grower can sell strawberries for $2 a box.
Marvin is desperate for money and the pickers aren't organized.
He might be willing to work for only $4 an hour.
The answer is profit maximization.
If Marvin's marginal revenue product is $10 an hour and his wages are only $4 an hour, the grower will be eager to hire him.
The grower will be so happy with the economics of this situation that he'll want to hire everybody he can find who's willing to work for $4 an hour.
Marvin's picks are too good to be true.
There is a limit to the profitmaking potential of this situation.
A few moments' reflection on the absurdity of trying to employ 1,000 people to pick strawberries should be enough to warn of the limits to profits here.
You don't have to go to business school to recognize this.
A grasp of economics may help explain why the grower's eagerness to hire more pickers will fade long before 1,000 are hired.
Marvin's marginal physical product was the 5 boxes of strawberries he could pick in an hour's time.
We need to keep track of the marginal physical product.
As additional pickers are hired, Figure 30.4 shows how strawberry output changes.
5 boxes of strawberries are picked by Mar vin.
The total output and marginal physical product are the same as he is the only picker employed.
The total output goes up with which to work.
This increase is 5 boxes per hour.
The grower will want to hire George and look for more pickers.
As more workers are hired, strawberry output continues to increase but not as fast.
The marginal physical product of the later hires is constrained by the limited availability of land and capital.
The number of boxes is a problem.
The pickers have to wait for an empty box because there are only 12 boxes.
The time spent waiting depresses the product.
The picking process is slowed.
The MPP of the fifth picker is 2 boxes per hour, while the MPP of the sixth picker is only 1 box per hour.
By the time we get to the seventh picker, the marginal physical product is gone.
Things get worse if the grower hires more pickers.
The pickers are no longer efficient in crowded conditions.
Most industries have similar observations on strawberry production.
Land and capital are limited by prior investment decisions in the short run.
Existing facilities must be shared by additional workers.
The marginal worker has less land and capital to work with.
Crowding causes of a variable factor decline as more of it is employed with a MPP.
The drop in marginal revenue product is similar to the drop in marginal physical product.
A box of strawberries costs $2.
We can easily calculate marginal revenue product with this price and output statistics in Figure 30.4.
Marginal revenue product is affected by the growth of output.
Marvin's marginal revenue product of $10 an hour has fallen to $6 by the time 4 pickers are employed and reaches zero when 7 pickers are employed.
MRP and MPP decline.
If the price of strawberries declined, the marginal revenue product would fall even faster.
The strawberry grower's eagerness to hire 1,000 pickers will be cooled by the tendency of marginal revenue product to diminish.
We don't know how many pickers will be hired.
If the firm is competitive in the labor market, a single producer may be able to hire an unlimited number of workers.
The strawberry grower's hiring decisions have no effect on local wages.
There is an unlimited supply of strawberry pickers willing to work for $4 an hour.
He only has to decide how many pickers to hire at that wage rate.
The answer is provided in Figure 30.5
The market wage rate is what MRP has fallen to.
We can conclude that the gender gap in pay was a factor in the decision to grow.
If wages are $4 an hour, there are 5 pickers.
Figure 30.5 shows the folly of hiring more than 5 pickers.
All 5 pickers will be paid the same wage according to the law of diminishing returns.
We can't say that any single picker is responsible for the decline in marginal revenue product.
Marginal revenue product of labor decreases because each worker has less capital and land to work with, not because the last worker hired is less able than the others.
The fifth picker can't be identified as an individual.
Marvin's MRP is the same as any other picker's after 5 pickers are hired.
All workers are paid the same wage rate, and each worker is worth no more than the marginal revenue product of the last worker hired.
Alex Rodriguez has sold Apple because he is catching on to the Big Kevin Brown.
The Yankees introduced their new third baseman Tuesday.
If the buzz at Yankee Stadium is any indication, the acquisition of the Stadium souvenir shop is pay employees hanging Rodriguez T-shirts.