Description
Company: BOEING
Develop Microsoft® PowerPoint® to be presented to the CEO's executive committee that addresses how Boeing determines what quantity of labor to demand and what events could shift the demand and supply of that labor.
Explain the following in your presentation:
- How your organization's production function is related to its marginal product of labor (do not do)
- How your organization's marginal product of labor is related to the value of its marginal product (do not do)
- How your organization's marginal product is related to its demand for labor (do not do)
- Examples of events that could shift the demand or supply of labor and why they do so (do not do)
- Reasons a worker's wages might be above the level that balances supply and demand (3 slides)
- An analysis of the impact that government policies addressing income inequity and poverty could have on labor demand or supply (3 slides)
- Conclusion Slide
Cite a minimum of 3 peer-reviewed sources not including your textbook.
Format consistent with APA guidelines.
Explanation & Answer
Attached.
The Economics of Labor
Markets
INSTITUTION AFFILIATION
DATE
Above-Equilibrium Wages
Wages at Boeing are set depending on the balance
between labor supply and labor demand
The assumption may not apply because some
employees receives higher wages than what is offered
in the market
This is because of the following major three reasons:
i. Minimum wage laws
All workers’ wages must be equal or above the minimum
legal amount set
Cont.;
ii.
Minimum legal wages includes even that of unskilled
laborers
Market Power of labor unions
A union refers to a workers association that
negotiates minimum wages and working
conditions on behalf of workers
They often set prices higher that what the market
forces offer
This is due to their negotiating power as they can
allow the workers to withhold labor
Cont.;
iii. Theory of efficiency wages
This holds that when workers are paid good wages, they
become more productive
The theory also says that good wages reduces worker’s
turnover and also improves the quality of people that
seeks employment in the company
It is profitable then to set wages far above what the
market forces are offering
...