1. The economic concepts are the same as for product markets.

2. The demand for a factor of production is derived from the demand for the good or
     service produced from that resource.

3. A firm tries to hire additional units of a resource up to the point where the resource’s
    marginal revenue product (MRP) is equal to its marginal resource cost (MRC).

4. In hiring labor, a firm will do best if it hires up to the point where MRP = the wage rate.
    Wages are the marginal resource cost of labor.

5. If you want a high wage:

        a. Make something people will pay a lot for.

        b. Work for a highly productive firm.

6. Real wages depend on productivity.

7. Productivity depends on real capital, human capital, labor quality, and technology.

Visual 1 Big Ideas about Factor and Resource Markets	Visual 3 The Demand for a Resource: Perfect Competition in the Sale of the Product	Visual 5 The Supply of and Demand for Labor in a Competitive Labor Market	Visual 7 The Determination of Economic Rent
Visual 2 Percentage Distribution of National Income–1992	Visual 4 The Demand for a Resource: Imperfect Competition in the Sale of the Product	Visual 6 The Wage Rate and Level of Employment in a Monopsonistic Labor Market	Unit 4 Key Ideas Unit 4 Review List

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