Discussion response Labor Supply and Demand - 275 Words

Discussion response: Labor Supply and Demand (Essay Sample) Content: Discussion response: Labor Supply and DemandName:Institution:Instructor:Date:Response 1I agree with the author on the view that wage factor plays an important role in labor supply and demand. Firms need labor as an input in production. Workers provide labor at the market wage rate. The marginal benefit of adding one more unit of labor is referred to as the marginal product of labor, and it represents an added revenue from the last unit of labor. The need for highly skilled labor can be a barrier to entry into the labor market. These barriers raise the demand of labor by hiring companies. However, there is a significant decrease of the labor supply because the particular skill that is required is scanty. For example, upon considering the workers who have masterà ¢Ã¢â€š ¬s degrees for particular positions, few job candidates will be available compared to when candidates with bachelorà ¢Ã¢â€š ¬s degrees are needed. Moreover, the need for thorough testing in a particula r job position lowers the job candidate, labor supply, significantly.Response 2The author is right in the assertion that different occupations have different rewards in terms of wages. The author also give...