Question

***** I KNOW THIS HAS BEEN ANSWERED BUT I NEED A DIFFERENT ANSWER ***** Economists sometimes say that all demand for inputs is "derived" demand in the sense that this demand is ultimately derived from the demand for the final products that the inputs produce. Write a short essay on whether, and to what extent, this would make the demand for inputs (labor, capital, raw materials, energy, etc.) intrinsically different from the demand for consumer goods that are produced by the inputs. In the specific context of your last answer, write an essay on the economics of labor markets in which relatively small differences in the productivity can yield huge differences in what employers are willing to pay. [Hint: One example of this would be found in sports. Thus, in Baseball, someone with a batting average of .320 might earn an annual salary that is tens of millions of dollars higher than someone with a batting average of .280, while someone with a batting average under .200 will probably not keep the job very long. Another example would be the market for actors in Hollywood where some earn 8 figure salaries while others have to wait tables to supplement their meager acting incomes]. Your essay should give several examples with some detail on why the salary differences are so great in some markets.

Answer 1

When a good is produced it requires lots of input whether it may be raw materials capital, etc The increase in demand of input due to the production of main or final goods is known as derived demand for example when the production of a wooded table is dance it requires wood, mica wood glue point or varnish nuts and bolts, labor and carpenters money, etc as consumer goods when increased to meet the production the demand of inputs are also increased Every demand of raw material is demand The promotion of Labor and capital may very depending upon the technique of production I e labour intensive technique or capital intensive and back word integration can also be considered labor market: - are central to economic activity in both poor and rich countries they allocate the use of labor in production they enable individuals to trade what is usually their most