Assignment Overview: The Assignment focuses on several concepts from the labor market including marginal production, total production, and wage determination. These terms are important in determining how many workers will be hired by a firm. Assignment: After reviewing all the Required Materials from the Background page, please address the following questions in an essay or short answer form: 1. What economic principle justifies the high salaries of some professional athletes? Suppose the manager of a baseball team wants to hire a new pitcher for $4 million per year. Under what circumstances would it make sense for the team to do so? 2. Assume that the government of the state of New Jersey has determined that a large number of injuries and deaths have occurred as a result of accidents involving the installation and repairs of electrical equipment at private residences. In reaction to this problem, the state assembly decides to pass a law which requires that all certified electricians pass a tougher state licensing examination. Analyze the impact that this law is likely to have on the market for electricians and explain why safety may not necessarily improve. 3. If the market price of the good or service that a firm produces increases, what happen to the demand of labor? Explain. 4. Several cities across the United States have passed legislation to raise the living wage. How would this policy affect firms? Make an argument for or against living wages in your city. Be sure to cite your references. (Note: the living wage calculator is a useful tool to determine the cost of living where you live). Assignment Expectations: Use concepts from the readings (as well as any good quality resources you can find.) Be sure to cite all sources within the text and provide a reference list at the end of the paper. Length: 4 pages double-spaced and typed. The following items will be assessed in particular: • Your ability to examine the labor market in a particular firm. • Some in-text references to the modular background material (APA formatting not required). • The essay should address each element of the assignment. Remember to support your answers with solid references including the case readings.