Unit 5: Factor Markets

A market where firms are the of resources (like labor, land, capital), and _________ are the suppliers of these resources.

The demand for a factor of production (like labor) is from the demand for the _________ and services that the factor helps produce.

The process of making decisions by examining the benefits and costs of unit of an activity or resource.

The revenue generated by hiring one more unit of a resource. Calculated as _________ x MR (or MP x P for perfectly competitive product markets).

The physical output produced by hiring one more unit of a variable resource (e.g., one more worker).