D2. Define the term marginal revenue product of labor (MRP). What are the two components of this, and why is it said to reflect the firm’s (business organization) demand for labor? Use a few examples of where you could apply MRP to labor in the private vs. the public sector.
D3. Explain the difference between a price floor and a price ceiling and identify how a minimum wage is related to this? Explain the federal government’s role, historically and currently, in minimum wage policy.
D4. What is the marginal product of labor & the law of diminishing returns? How are these two concepts related to the labor market? Give an example of the law of diminishing returns for both a private sector organization and a public sector organization.