CHAPTER 5 The Demand for Labor in the

CHAPTER 5 The Demand for Labor in the Long Run

The Capital/Labor Ratio in 10 Industries, 1970 and 1999 SOURCES: Bureau of the Census, Statistical Abstract of the United States (Washington, D. C. : Government Printing Office, 1992 [table 860] and 2001 [table 684]); Bureau of Labor Statistics, Employment and Earnings (March 1971, table B-2). Dollar figures are in 1999 dollars. Figure 5. 1 2 © 2003 South-Western

A Set of Isoquants Figure 5. 2 3 © 2003 South-Western

A Production Technology with Zero Substitution Possibilities Figure 5. 3 4 © 2003 South-Western

A Set of Isocost Lines Figure 5. 4 5 © 2003 South-Western

The Profit-Maximizing Combination of Capital and Labor Figure 5. 5 6 © 2003 South-Western

The Change in the Short-Run and Long-Run Demand for Labor Due to a Wage

The Long-Run and Short-Run Demand Curves for Labor Figure 5. 7 8 © 2003

The Effect of Technological Change on Labor Demand Figure 5. 8 9 © 2003

The Impact of Technological Change on the Long-Run Demand for Labor Figure 5. 9

The Effect of Changing Factor Prices on Employment Forecasting Figure 5. 10 11 ©

The Relationship between Productivity Growth and Employment in Agriculture and Telephone Communication, 1960– 1996 SOURCES: Economic Report of the President, 2001 (Washington, D. C. : Government Printing Office, Table B-99 (agriculture productivity), Table B 67 (agriculture price index); Statistical Abstract of the United States (Washington, D. C. : U. S. Bureau of the Census), 1974 Table 566 and 1995 Table 668 (telephone employment); Handbook of U. S. Labor Statistics, 3 d ed. (Lanham, Md. : Bernan Press, 1999) (1996 telephone productivity), Table 5 -3; Handbook of U. S. Labor Statistics, 1975 (Washington, D. C. : Government Printing Office), Table 128 (1960 telephone productivity). Bureau of Labor Statistics <www. bls. gov/cps> (agriculture employment). Table 5. 1 12 © 2003 South-Western

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