By the end of this chapter, you should understand:

1. a firm’s demand for inputs in the long run and short run
2. marginal value product, marginal revenue product, and marginal cost of a factor
3. the industry demand for labour
4. labour supply decisions
5. transfer earnings and economic rent
6. labour market equilibrium and disequilibrium
7. how minimum wages affect employment
8. isoquants and the choice of production technique