Labor, Stocks and Bonds

According to the basic law of demand and supply, growings in the echt wage rate or the price of lug must decrease the quantity of labor demanded, as employers find it increasingly expensive to hire more people. Would increases in the real wage rate, therefore, decrease the productivity of the square, that is, the number of the proceedss that it produces? Not necessarily.This is where the assumption of decrease marginal product of labor steps in to save the firm from significantly reducing its supply of outputs. Marginal product of labor refers to the increase in output produced from a given capital farm animal when an redundant worker is employed (Marginal product of Labor). On the other hand, diminishing marginal product of labor means that each surplus labor hour results in less and less extra output (Costs of Production). This assumption is explained by the popular saying, Too numerous cooks spoil the broth. Thus, the firm does not need to increase its demand for labo r beyond a certain number in any case.Stocks and BondsThe distinction between stocks and bonds is explained by the difference between owning and lending (The divagation mingled with a Stock and a Bond). The buyer of a stock is a part owner of the telephoner whose stock he has bought. He gets to vote on the way the company should be run, and enjoy dividends in addition to capital appreciation as a participator in its advantage (The Difference Between a Stock and a Bond).Of course, he gets to participate in the failures of the company to boot, through lower dividends and stock prices. The purchaser of a bond, on the contrary, will be paid before the stockholders in the case of company failure. He has lent money to the company afterwards all. The company, in turn, promises to repay its loan at a fixed time, with interest. even so, the purchaser of the bond does not enjoy extra interest when the company performs exceptionally well (The Difference Between a Stock and a Bond).Works CitedCosts of Production. Ohio State University. 8 Oct. 2007. <http//www.econ.ohio-state.edu/jpeck/H200/EconH200L9.pdf>.Marginal Product of Labor. London South East. 8 Oct. 2007.<http//www.lse.co.uk/financeglossary.asp?searchTerm=&iArticleID=2275&definition=marginal_product_of_labour>.The Difference Between a Stock and a Bond. Cash +, Issue 1 (Fall 2006). 8 Oct. 2007.<http//www.lowryhill.com/finplan/Cash%20+/Cash+%2005%20Fall.pdf>.