Unit 7: Resource Markets
In this unit we explore how firms decide how much to use their resources (land, labor, capital, and entrepreneurial ability), which are required to produce a final good, and at what price. We derive the demand for resources from the demand for the final goods used to produce them. For example, if consumer demand for cars increases (the final good), the demand for steel (and every other resource car manufacturers use to build the car) also increases.
Completing this unit should take you approximately 3 hours.