ECN 201 Grantham University Increase in The Minimum Wage Discussion
Your initial post should be 75-150 words in length, and is due on Sunday. By Tuesday, you should respond to two additional posts from your peers. Markets seek equilibrium, and the demand for goods and services will come to an equilibrium with supply of goods and services. When markets are not in equilibrium, surpluses and shortages, as well as underground markets, can exist. Sometimes, the government may want to intervene in markets to try to help reduce economic hardships. Analyze the impact of an increase in the minimum wage from the current level to $15 per hour. How would the following be affected?a. employment of people previously earning less than $15 per hourb. the unemployment rate of teenagersc. the availability of on-the-job training for low-skilled workersd. the demand for high-skilled workers who are good substitutes for low-skilled workersReview the mechanics of price floors and price ceilings. Why does a price floor lead to surpluses? Why does a price ceiling lead to shortages? Review consumer and producer surplus. A price floor will lead to a transfer of consumer surplus to producer surplus; a price ceiling will lead to a transfer of producer surplus to consumer surplus; both price regulations lead to deadweight losses, which is a loss of surplus to society. Why?View your discussion rubric. Jacqueline Chandler week 2COLLAPSEThe people who are making less then $15 hour could be hard for them to take care of home and their families to be able to take care of yourself i feel minmium wage should be $15 hour or more. Most teenagers can get help from their parents but for the ones who can't teenagers might not be able to buy the things they would like or even hang out with their friends. Low-skilled workers would have to learn quick on their own without the training it could be chellange but in the real world it best to teach yourself so that you can know whats going on. High skilled workers would proabably want more money to help low-skilled workers. When price ceililing has a shortage that means its more demand in the equilibrum price, there is more quantity supplied. For surplus to cause a loss to society the market has not produced which cause it to be deadeweight lossesPaige Allen Week 2 - AllenCOLLAPSEI have seen an increase in the minimum wage that my company specifically has set. Through the last hiring phase they were more likely to hire internally to fill the positions, than externally. I also noticed that when the wage jumped, all wages were not redefined and no more was expected out of the employees than before. I think it is hard to put A, B, C, and D into different categories because it is hard to know what a company will do when faced with a minimum wage increase. I can see teenagers not being picked for jobs, however I can also see many more teenagers looking for jobs and trying harder because of the incentive of the pay rate. I don't necessarily think that people making less that $15 now would largely be effected. I think if a company is going to be paying more for employees that they would want to provide more on the job training to those that they hire, to make sure they they are getting the most out of their investment. I can see however that they would look at quality over quantity and looking for higher skilled employees. This is a hard discussion because there are so many sides to what would or would not happen.Price floors can lead to a surplus because if it doesn't get any cheaper, items could be demanded less, and cheaper alternatives would be produced. Price ceilings could lead to a shortage because if the demand rises, not being able to raise the price would potentially lead to not enough product to go around.Your initial post should be 75-150 words in length, and is due on Sunday. By Tuesday, you should respond to two additional posts from your peers. A profit-maximizing price searcher will expand output as long as marginal revenue either exceeds or is equal to marginal cost, lowering its price or raising its price until the midpoint of their demand curve and highest total revenues are achieved. Why are oligopolies able to earn both short-run economic profits and long-run economic profits, while price taking firms like perfect competitors can only earn short-run economic profits?Review the characteristics of perfect competition and imperfect competition (monopolistic competition, oligopoly, and monopoly). Barriers to entry don't exist for perfect competition, but barriers to entry exist for imperfect competition. What are the implications of barriers to entry to the firm and competition? Review consumer surplus and producer surplus; what happens to consumer surplus is price is above equilibrium, or in this case above normal profits?View your discussion rubric. Tyrell Bryant week 6COLLAPSEThere is a lack of competition in the oligopolies’ market because of the large number of barriers to entry. With only a few firms in this type of market, the profits can easily be shared. This occurs when the firms collude rather than start price wars which would only wipe out all profits. Alternatively, there are no such barriers in perfect competition. Thus, in the short-run, the supply is low which makes prices high, which allows the profits to be enjoyed. However, in the long-run, more firms enter the market, which causes the supply to increase and thus makes the prices lower and leaves the firms without a profit.Keandra Hayes week 6COLLAPSEWith an oligopoly no single firm is able to have a large amount of market power. All firms have to collude in order to raise prices. The perfect competition is a market type in which no participant is large enough to set prices. Short run economic profits leads to firms entering the market. In the long run purely competitive firms will be both productive and allocatively efficient. Oligopoly firms are the least competitive structures in which long-run ecomonic profits are present due to downward-sloping demand curve and high barriers to entry. https://content.grantham.edu/academics/GU_ECN201/W6Lecture1.htmYour initial post should be 75-150 words in length, and is due on Sunday. By Tuesday, you should respond to two additional posts from your peers. Profit-maximizing firms will hire additional units of a resource up to the point at which the marginal revenue product (MRP) of the resource equals its price. With multiple inputs, firms will expand their use of each until the marginal product divided by the price (MP/P) is equal across all inputsWhat is the link between marginal revenue product and wages? Due to there being discrepancies between the productivity and resource offerings (i.e., education, skills, experience) in labor markets, is it justified for one employee with a higher marginal revenue product to earn a higher wage than an employee with a lower marginal revenue product? Does this notion of marginal revenue product and wages conflict with minimum wage laws?Review the mechanics of demand and supply. How does marginality work in economics?View your discussion rubric.Christina Valeary Week 7 DiscussionCOLLAPSEThe marginal revenue product of labor refers to the extra income a firm generates by hiring an additional employee holding other factors constant. The product of the marginal product of labor and the marginal product of labor gives the marginal revenue product of labor (Lumen, n.d). Profit-maximizing firms hire workers until the wage rate and the marginal revenue product are equal. The marginal revenue productivity theory indicates that a firm will stop hiring more employees if additional wages exceed extra income from their labor.The marginal revenue product of labor changes when a variable affecting the marginal product of labor or price changes. Changes in the product demand or price of substitutes or complements cause changes in the price of output (Lumen, n.d). The marginal revenue product of labor curve shifts due to changes in these variables. Firms in a perfectly competitive market will increase labor until its marginal product is equal to the wage rate. In this market, the equilibrium employment level and wage occur where the demand and supply for labor are equal. A worker’s marginal revenue product determines their wages (Pettinger, 2017). In short, the more productive a worker is, the higher the wages. The efficient allocation of resources improves profitability, and therefore firms must pay wages depending on a worker’s productivity. This notion does not conflict with minimum wage requirements as firms reward workers for their efforts. Marginality indicates that the additional utility of a good or service determines value. Firms can use this concept to determine their products’ price and ensure that it matches their value. ReferencesLumen. Demand for Labor | Boundless Economics. Courses.lumenlearning.com. https://courses.lumenlearning.com/boundless-economics/chapter/demand-for- labor/#:~:text=The%20marginal%20revenue%20productivity%20theory%20states%2 0that%20a%20profit%20maximizing,attributable%20to%20the%20additional%20wo rker. Pettinger, T. (2017). What Determines Pay / Wages? - Economics Help. Economics Help. https://www.economicshelp.org/blog/1737/economics/what-determines-pay/.Michael Mclaurin Week 7 discussionCOLLAPSEThe link between marginal revenue product and wages is that employees get paid piece work when it comes down to marginal revenue product (employees get paid according to their work). So if you don't work, you don't get paid. When it comes down to wages, workers get paid the same no matter how much work or product they produce during the work day. I believe that employees with higher marginal revenue product should earn higher wages than employees with lower marginal revenue product in some cases. I used to be a cable contractor and it would've been unfair to me for employees with lower marginal revenue product to earn the same wages. This does not conflict with minimum wage laws in my opinio because some jobs and some applications require a different approach to wages. Not all situations are the same.