3I. Labor Demand Summary

1. Firms maximize profit.2. Q = f(K, L): Short-run and long-run3. Price of labor = hourly wage rate4. Firms are price-takers.

SR and LR conditionsMonopoly and monopsonySubstitutes and complementsPayroll Tax

1. Firms maximize profit. 2. Q = f(K, L): Short-run and long-run 3. Price of labor = hourly wage rate 4. Firms are price-takers.