a firm will hire workers up to the quantity at which the wage rate equals the: course hero

When a firm hires labor up to the point where the wage is equal to the marginal revenue product of labor the firm is group of answer choices?

profit-maximizing firmA competitive, profit-maximizing firm hires workers up to the point where the value of the marginal product of labor is equal to the wage. 7. Because the firm chooses the quantity of labor at which the value of the marginal product equals the wage, the value-of-marginal-product curve is the firm's labor demand curve.

What happens as a firm increases the number of workers that it hires?

What happens as a firm increases the number of workers that it​ hires? Both the marginal product of labor and the marginal revenue product of labor decrease.

What is the amount of labor that this profit-maximizing firm will hire?

Explanation: A profit maximizing firm will hire labor until the marginal product of labor is greater than the wage rate. If the marginal product of labor is greater than the wage rate, then the firm should hire more labor until the two values are equal.

What is the equation to determine the number of workers a firm should hire?

The marginal revenue product of a worker is equal to the product of the marginal product of labor (MPL) and the marginal revenue (MR) of output, given by MR×MPL = MRPL. This can be used to determine the optimal number of workers to employ at an exogenously determined market wage rate.

Which of the following will occur in a given labor market when the wage rate rises?

There is a positive relationship between the wage rate and the quantity of labor supplied. Which of the following will occur in a given labor market when the wage rate rises? A decrease in the product price will decrease the demand for factors used to produce that product.

What is likely to happen to the equilibrium wage and quantity of teachers as a result of these two events?

What is likely to happen to the equilibrium wage and quantity of teachers as a result of these two​ events? The equilibrium wage rises and the effect on the equilibrium quantity of elementary school teachers is indeterminate. Higher wages that compensate workers for unpleasant aspects of a job.

Why does profit-maximizing firm hire workers up to the point where the wage equals the value of marginal product?

Theory states that a profit maximizing firm will hire workers up to the point where the marginal revenue product is equal to the wage rate, because it is not efficient for a firm to pay its workers more than it will earn in revenues from their labor.

How is a firm's wage normally determined in the labor market?

Just as in any market, the price of labor, the wage rate, is determined by the intersection of supply and demand. When the supply of labor increases the equilibrium price falls, and when the demand for labor increases the equilibrium price rises.

How is the wage rate determined in a perfectly competitive Labour market?

Wage rate determined by demand for and supply of labour is equal to the marginal revenue product of labour. Thus, under perfect competition in labour market, a firm will employ the amount of labour at which wage rate = MRP of labour.

How do you calculate how many employees are employed?

Calculate the employment rate. Divide the number of employed people by the total labor force. Multiply this number by 100. The result of these calculations is the employment rate.

How does a firm decide whether to hire an additional worker quizlet?

How does a firm decide whether to hire an additional worker? Comparing the cost of hiring the worker to the associated benefit. What is the cost associated with purchasing an additional resource?

How is labor demand determined?

It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.