Jan 17, 2017 · 34) When a firm hires a worker for one hour, the marginal cost to that firm equals the A) hourly wage of that worker. B) diminishing marginal productivity of that worker. C) price of each item that the worker produces in that hour. D) average total cost of production at the quantity produced. Answer: A
Apr 24, 2017 · Question 26 of 40 25 25 Points When a firm hires a worker for one hour the. Question 26 of 40 25 25 points when a firm hires a. School Ashworth College; Course Title EXAM 6; Type. Test Prep. Uploaded By karendtisnumba1. Pages 30
When a firm hires a worker for one hour, the marginal benefit to that firm equals the A. hourly wage of that worker. B. price of each item that the worker produces in that hour. C. number of items the worker produces in that hour. D. dollar value of …
Dec 04, 2019 · 26) If a firm hires a worker by paying her a wage lower than the value of the marginal product of the worker, it implies that _____. A) the firm is earning zero economic profit B) the firm is making an optimum decision C) the firm should reduce its employee strength to maximize profits D) the firm should hire more workers to increase profits
The cost of labor to a firm is called the wage rate. This can be thought of as the firm's marginal cost. The additional revenue generated by hiring one more unit of labor is the marginal revenue product of labor (MRPL). This can be thought of as the marginal benefit.
“The marginal revenue product of labor (MRPL) is the change in revenue that results from employing an additional unit of labor, holding all other inputs constant.May 3, 2019
1. When deciding how many workers to hire, the firm considers how much profit each worker would bring in. 2. Because profit equals total revenue minus total cost, the profit from an additional worker is the worker's contribution to revenue minus the worker's wage.
Correct answer: Explanation: The firm will hire three units of labor, because it will continue to hire until the wage exceeds the marginal revenue product of labor (MRPL).
The marginal cost of employing labour is the change in total labour costs from employing one extra worker.Jul 4, 2018
Therefore, the sale price of a single additional item sold equals marginal revenue. For example, a company sells its first 100 items for a total of $1,000. If it sells the next item for $8, the marginal revenue of the 101st item is $8.
According to the marginal revenue productivity theory, a profit-maximizing firm will hire workers up to the point where the marginal revenue product equals the wage rate for the firm. In addition to the direct impact of hiring one more employee, the change in output is not limited to that effect.Nov 29, 2021
Marginal cost is calculated by dividing the change in total cost by the change in quantity. Let us say that Business A is producing 100 units at a cost of $100. The business then produces at additional 100 units at a cost of $90. So the marginal cost would be the change in total cost, which is $90.
A profit-maximizing firm will hire workers up to the point where the market wage equals the marginal revenue product. If the going market wage is $20, in this scenario, the profit-maximizing level of employment is 4 because at that point, the marginal revenue product is $20.
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.
The Cost-Minimization Rule Cost is minimized at the levels of capital and labor such that the marginal product of labor divided by the wage (w) is equal to the marginal product of capital divided by the rental price of capital (r).Dec 21, 2018
The general rule is that the firm maximizes profit by producing that quantity of output where marginal revenue equals marginal cost. The profit maximization issue can also be approached from the input side.