Introduction to Microeconomics

13. The Labor Market

Economists can say little about population and its size, despite the gloomy views of Malthus. More people are a good thing because of the division of labor. Living standards are higher when populations are higher. Living standards are higher when populations are denser. When people voluntarily reduce births, average population age rises. Many of the poorest areas of the world are low density, e.g. Africa and interior Brazil. Part 13 of 14. Presented in 1986 at New York Polytechnic University.

12. Labor and Unions

In order for anyone to make ethical judgments, he must know the consequences of his various actions. In questions of union actions displacement or unemployment for oneself or others will be considered unfortunate by most people. Once understood, far fewer people will be prounion or hostile to nonunion competitors. Unions lower the marginal productivity of all union workers. Part 12 of 14. Presented in 1986 at New York Polytechnic University.

11. The Structure of Production

As factors of production, supply and demand of labor, land and capital will determine how much the producer will get out of this process. This process occurs in different stages. In the earlier or higher stages, producers' goods must be produced that will later cooperate in producing other producers'  goods that will finally co-operate in producing the desired consumers' goods. The consumers' good is valued because it is consumed - directly satisfying man's ends. Part 11 of 14. Presented in 1986 at New York Polytechnic University.

14. Interest Rates and Course Review

The time market determines the pure rate of interest. Price per unit of time may be wages or rent. The interest income will be earned by the capitalist who has assumed the task of advancing present money. The capitalist then waits for five years until the product matures before recouping his money. Part 14 of 14. Presented in 1986 at New York Polytechnic University.

8. The Firm

Business men must make sure they can cover their costs by incoming revenue. The production function will yield a certain quantity of a product. The firm considers marginal costs and average costs to weigh where along the demand curve production is.  Average revenues less average costs multiplied by quantity will reflect profits (or losses) for the firm. Every firm (not industry) will always be where the demand curve is elastic. Perfect and pure competition is where the demand curve for the firm is infinitely elastic - horizontal. Real life has falling demand curves. Everybody becomes a monopolist. The anti-trust movement was meant to purify competition. Monopoly had always meant government grants of privilege to certain industries. But now means falling demand curve - that's everybody. Part 8 of 14. Presented in 1986 at New York Polytechnic University.