A minimum wage above the equilibrium wage can decrease employment.

Occupational licensing laws can increase wages for those who are licensed but may decrease overall employment in the occupation.

Subsidies for education can increase the number of qualified workers, increasing labor supply and potentially lowering wages.

The market wage and quantity are determined by the intersection of market supply and demand for labor. Individual firms face a horizontal MRC curve at the market wage.

The MRC curve is above the labor supply curve. The monopsonist hires where MRP = MRC, but pays the wage on the labor supply curve at that quantity, resulting in lower wage and employment.

It creates a surplus of labor (unemployment), shown by the quantity supplied exceeding the quantity demanded at the minimum wage.

The firm's demand curve for labor is its MRP curve.

Demand for a factor of production based on the demand for the final product it produces.

The additional revenue generated by hiring one more worker.

The cost of hiring one more worker.

A market where many firms compete for workers, and workers are wage-takers.

A market with only one buyer of labor, giving the firm wage-making power.

Markets where firms buy factors of production (labor, land, capital, entrepreneurship) from households.

Workers or firms that cannot influence the market wage; they must accept the going rate.

Firms that have the power to influence the market wage, typically due to being the sole or dominant employer.

Resources used to produce goods and services; typically labor, land, capital, and entrepreneurship.

The amount of output produced per unit of a resource (e.g., labor).