I need 350 word initial post and two replies of 75 words each. I have attached the replies, Please send me soon. Explain how a firm’s production function is related to its marginal product of labor,

Jie Lin 

RE: Week 1 Discussion

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1. First of all, the production function shows the association between the amount of production and amount of output produced. And any adjustment in firm's marginal product of labor will lead to a change in production function. For instance, if the marginal production go up, the total amount of production will also increase. Moreover, the amount of marginal product of labor is the same as the wage rate, which means that the amount for labor demand is equal to the marginal product curve.

2. In an equilibrium market, the wage and the amount of labors will change according to the supply and demand in the market. And under the circumstance of equilibrium, firms will seek for profit maximization, which means they will hire workers until the wage is equivalent to the amount of marginal product. The marginal product of labor will equal to wage when supply and demand is in equilibrium.

3. Under such circumstances, the wage rate will drop, as there will be a larger pool of labors for employer to select from. And the rents earned by owners of land and capital will likely increase, as there will be more people seeking for houses and accommodation in the market.

4. Education is type of capital in a sense that people will likely to get a job with higher salary if they got good education. Therefore, education can be seen as a type of human capital, as it consumes resources at one point that increases future productivity.

5. First of all, superstar has a good public image, as they are beloved by many people; Secondly, people want the best product from the best producer. And it is easier to see superstars in the music industry, as they can get large fan base easily through copy selling and putting out their works on music streaming services. As for dentistry, it is impossible for them to achieve a mass appeal.

6. The discrimination might persist in a competitive market if a government allows its people to discriminate. For instance, the apartheid that happened in South Africa back in the 90s, which ensured white people's domination in society, politics, as well as economics.The black race at the time had no rights at all. 

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Qihui Ni 

RE: Week 1 Discussion

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1. In economics, the production function relates the maximum amount of output can be produced from a given number of inputs (e.g. labor). When the number of workers increases, the marginal product of labor decreases, which means that the marginal product of labor highly relies on the production function and they have a negative relationship. The value of the marginal product of labor equals marginal product of labor multiplied by the price of the product, so if the marginal product of labor increases, the value of the marginal product of labor must increase as well. A profit-maximizing company should always make employing decisions based on the value of the marginal product of labor and wage. There should be more labor when those two terms are the same level.

2. When the number of labor increases, the additional output produced is decreasing. So it must change the equilibrium wage and the value of the marginal product by the same amount to allow the market of labor to be in equilibrium. When supply and demand are same, the value of marginal product of labor = wage.

3. When there are more and more available workers, the wage will decrease for sure, which will also increase the demand for additional labor. Besides, employers will demand more land to extend their company, so rent will go up in the later stage. And for those workers, they need place to live, so the price level of rent will increase significantly.

4. Workers who have higher level of education qualifications can normally receive more salaries than those who don’t. The return for spending time on getting a better education qualification is being more productive in the future.

5. First, consumers want to enjoy the product provided by the producer. Second, the cost of the product for all consumers is low, but still with a good and satisfied quality. For example, in dentistry, the cost of the product (service) is high, it is impossible to satisfy all consumers in the market, so there is no superstar in dentistry. On the other hand, in sports industry like basketball, the cost of watching NBA games is low no matter if you watch it on TV or online, so there are many superstars in the NBA.

6. On one hand, in a competitive market, companies will try as best as they can to satisfy consumers preferences and tastes. For example, in movie industry in the U.S, if consumers prefer to see more white race actors than yellow race actors, movie producers will hire more white race actors than Asian actors. On the other hand, the capability also plays a key role in the competitive market, that’s why we have seen only see a few Asians in NBA.

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