Explain the nature of interaction between firms and, Microeconomics

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Explain the nature of interaction between firms and

Assignment -

Question 1: Input/Factor markets and Product/Output markets are related through the interactions between the households and firms in the economy.

1. Explain the nature of interaction between firms and households in the input markets.

2. Explain the nature of interaction between firms and households in the product markets.

3. What is the distinction between 'real flows' and 'monetary flows' in a market economy?

Question 2: What factors will increase the demand for labor?

Question 3: How a firm determines equilibrium level of employment.

Textbook - Core Microeconomics 3^rd edition by Eric Chiang.

Chapter 11 - The Labor Market.

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