This chapter covers the idea of markets for factors of production. Before even reading this I immediately remembered the flow chart we received numerous chapters ago relating firms, households, job markets, and factors of productions. This chapter dives further into what factors of production might entail and why it is so important for a company to heavily consider them when pursuing their business.
This chapter overall made sense to me. I understood it pretty much as marginal cost only with people, which was made it easier take in at first. I understand that it is highly beneficial for competitive markets, however the book made it seem as though this were not applicable to markets such as monopolies of oligopolies. Would this idea not be just as beneficial to them? I was a little confused by this but I won't let this get in head. Another thing that kind of confused my in this chapter was the differentiated factors that affect supply and demand. I didn't quite understand why they some of the situations didn't go both ways, but again this is something that I know not to focus too heavily on. Overall the chapter was easy to understand, but a little clarification in class would be great.
