Labor Markets and Productivity

1
Labor Markets and Productivity
From Diego Rivera Murals, Detroit Institute of
Arts
2
What is the most that you would be willing to
pay to attend a live performance of the reunited
Led Zeppelin in Campbell Hall?
3
The marginal product of labor is the

• Amount of output divided by amount of labor
  input.
• Amount of output if only one unit of labor is
  used.
• Extra output gained from adding one unit of
  labor.
• Amount of time it takes to produce one unit of
  output.

4
What is the marginal product of labor if 4 units
of labor are currently used?

• 6
• 5
• 30
• 7
• 2

5
Clicker Reflex Test

• Press the letter A on your clicker.