Core-011 Labor Markets
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Corporate
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About Core-011 Labor Markets
About the Teacher
Jay Moulton
Jay Moulton is a business veteran. In short:
- Corporate finance and turnaround expert in U.S. and Canada
- CEO or operator of numerous companies in many industries
- 30 years of actually applying business economics principles
- Successfully led and invested in several leveraged buyouts
- Director or advisor to 30+ different companies
- Experience in both for-profit and not-for-profit sectors
- Producer of 700 professional videos and several TV shows
- Author of six economics and business strategy books
- Graduate of Harvard Business School MBA program
- Graduate of The Royal Military College of Canada
- Professional electrical engineer
- Governor of the Harvard Club of British Columbia
Labor Markets
MODULE 1
Why does a firm hire a worker? What questions does a firm have to ask to decide if they should hire a worker? The firm needs to know if it will make a profit by hiring the worker or record a loss.
The Firm’s Hiring Decision
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Learning objectives for this chapter - Learning Objectives - The Firm’s Hiring Decision
The video answers three questions. First, does a firm hire a worker? Second, if a new worker comes into a firm and produces a positive amount, is that alone enough to cause the firm to hire him? Third, is the hiring decision of a janitor any different from hiring a CEO or a secretary?
Marginal Product is how much more a firm can produce by adding one more unit of input.
Marginal product is the extra output produced by adding one more unit of input. For example, how much more can a firm produce by hiring one more worker.
Marginal revenue product is the additional revenue generated from selling additional product. Marginal product times marginal revenue equals marginal revenue product.
The decision by a firm to hire another worker is based on one simple question: Will the firm make a profit by hiring this worker or realize a loss?
Why Wages Vary
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Learning Objectives - Why Wages Vary
The video analyzes the existence of wage differentials.
Even though a worker on the first floor performs the same activities as a worker on the tenth floor, the worker on the tenth floor has a more dangerous job and may require greater compensation.
This animation explores the compensating wage differential between jobs in different locations.
Learning Objectives - Why Wages Vary
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