A profit-maximising producer will hire labour to the point where [1] marginal revenue product equals the wage rate. [2] marginal revenue equals zero. [3] labour and capital costs are equalised [4] its marginal product equals marginal revenue.

/in /by

A profit-maximising producer will hire labour to the point where

[1] marginal revenue product equals the wage rate.

[2] marginal revenue equals zero.

[3] labour and capital costs are equalised

[4] its marginal product equals marginal revenue.

You might also like
Comparative advantage is based on A. Opportunity cost B. labor cost C. capitol cost D. US dollar E. both A and D above
Consider the Beiswanger Company, a small firm engaged in engineerng analysis. Beiswanger's president has estimated that the firm's output per month (Q) is related in the following way to the number of engineers € and technicians used (T): Q = 20E - E^2 + 12T - 0.5T^2 . The monthly wage of an engineer is $4,000, and the monthly wage of a technician is $2,000. President allots $28,000 per month for the combined wages of engineers and technicians. What will be the calculated MP^e? Select one: a. 10 - 2E b. 20 - 2E c. 30 - 3E d. 16 - 3e
In equilibrium a consumer was buying 5 units of good A and some of good B. His income was Rs 100 and the prices were PA = Rs 8 and PB = Rs 5. The price of good A falls to Rs 5. By how much does his income need to be compensated so that he is able to buy the (old) bundle at the original equilibrium?
Eggs Ltd., an egg producing farm, requires short term financing and are consulting with you for advice on which financing option to choose to fund its purchases of feed for its hens. An operations consultant determined that the standard deviation of feed use on a monthly basis is 33%, with January feed use being the lowest at 1 ton and November being the highest at 2 tons. The farm manager has found two options, a revolving credit facility at a rate of 5% per annum with interest payable on the balance of the facility at the end of every month OR a one- year renewable loan at a rate of 4% payable as part of the monthly repayments on the loan. Which loan would you advise the company to take? (No calculations are required in this answer, though they are permissible. Staff your answer with a brief argument for the option you reccomend)
Describe and GIVE SOME EXPLANATIONS about 2 FACTORS that would cause most companies' labor demand to move, as well as HOW THIS WOULD INFLUENCE EQUILIBRIUM WAGES and the VALUE OF LABOR'S MARGINAL PRODUCT.
A AND B DRIVE TO A PETROL PUMP. A SAYS “I WANT 20 LITRES OF PETROL” AND B SAYS “I WANT RS. 20/- WORTH OF PETROL”. WHAT CAN YOU SAY ABOUT A AND B’S PRICE ELASTICITY OF DEMAND ON PETROL?
Calculate the average return, variance, standard return deviation and coefficient of variation for each of the listed securities in
If a firm in a perfectly competitive industry raises its price above the market price.......