1.8 Factor Markets


Thursday, February 20, 2020


Today we cover a topic that often does not get covered in microeconomics courses, but is important nonetheless for our purposes: markets for factors of production (e.g. land, labor, capital, supplies, etc). We discuss what determines prices in these markets, and how they vary with monopoly power and monopsony power (a buyer with market power). We primarily focus on labor markets as the main factor market.


Homework 1 due February 27

Homework 1 will be posted and is due for Thursday, February 27.