eco 4

The Case Assignment focuses on several concepts from the labor market including marginal production, total production, and wage determination. These terms are important in determining how many workers will be hired by a firm.

Write a 4- to 5-page paper that addresses the following questions:

1. Discuss two factors that would increase demand for labor.
2. If the market price of the good or service that a firm produces increases, what happen to the demand of labor? Explain.
3. Suppose that some government-sanctioned licensing requirements are lifted (removed) in a particular industry. What would happen to the wage in this market? Explain.
4. Do some research on your own. In general, do you think the government should intervene in the labor market? (Be sure to cite your references.)

Assignment Expectations

Use concepts from the modular background readings as well as any good-quality resources you can find. Be sure to cite all sources within the text and provide a reference list at the end of the paper.

Length: 4–5 pages double-spaced and typed.

The following items will be assessed in particular:

• Your ability to understand marginal productivity and how firms make decisions.
• Some in-text references to the modular background material (APA formatting not required).
• The essay should address each element of the assignment. Remember to support your answers with solid references including the Case readings.