Students participate in an interactive simulation to determine the number of workers a farm should hire to maximize profits in a perfectly competitive labor market.
Grade Level
9–12
Concepts:
- Factor cost (resource cost)
- Factor market
- Fixed capital
- Labor
- Marginal factor cost (MFC)
- Marginal physical product (MPP)
- Marginal revenue product (MRP)
- Output
- Perfectly competitive
- Physical product
- Price
- Profit maximization
- Returns to scale
- Total revenue
- Wage
Time required
90 minutes
