A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
This chapter looks at the supply side of factor markets and the supply originates from households. It also looks at the demand side on factor markets as initiated by firms. In consumer markets, firms supply goods and services and consumers pay for them. In factor markets, firms demand labor and capital, and they pay for them. Marx described wages as a means of exploiting labor. By this, he expresses the idea that the amount of labor required to produce a good determines the economic value of the good. This is known as the labor theory of value, and Marx shared the idea with Adam Smith and David Ricardo. The capital that households supply to firms is financial capital, since by definition households are not producers; they cannot provide capital in form of goods. Supply and demand for the labor market depend on the wage and the demand for capital depends on the capital costs.
This chapter looks at the supply side of factor markets and the supply originates from households. It also looks at the demand side on factor markets as initiated by firms. In consumer markets, firms supply goods and services and consumers pay for them. In factor markets, firms demand labor and capital, and they pay for them. Marx described wages as a means of exploiting labor. By this, he expresses the idea that the amount of labor required to produce a good determines the economic value of the good. This is known as the labor theory of value, and Marx shared the idea with Adam Smith and David Ricardo. The capital that households supply to firms is financial capital, since by definition households are not producers; they cannot provide capital in form of goods. Supply and demand for the labor market depend on the wage and the demand for capital depends on the capital costs.
Factor Markets
Brockmann, Christian (author)
Construction Microeconomics ; 129-137
2023-02-28
9 pages
Article/Chapter (Book)
Electronic Resource
English
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