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How does a firm know when it can afford to hire more workers?
if the MRP is greater than a firms MC
What is a Major element of trickled down economics?
Cutting taxes on businesses will encourage them to hire more workers
Ideas is a major element of trickle down economics?
Cutting taxes on businesses will encourage them to hire more workers
What ideas is a major element of trickle down economics?
Cutting taxes on businesses will encourage them to hire more workers
Why does the profit maximizing rule still apply when firms decide how many workers to hire?
Firms will continue to hire workers so long as one additional worker is able to make the firm an additional unit of profit. A competitive firm pays a wage that is equal to the marginal product of labour. Example: suppose hiring one more worker results in an increase in output of 1 unit. Now suppose that unit can be sold for $1 and that there are no other variable costs (think software.... nearly costless to produce once it has been created). What is the wage that the worker receives? The firm would be willing to hire the worker and pay them any wage that was less than or equal to $1. This is the same as the profit maximization rule. You would continue to hire workers until the last dollar spent on wages was exactly equal to the last dollar earned in sales (ie. zero profits). This is the exact same idea as profit maximization. If you can make 1 widget and it costs 80 cents and the you sell it for $1, you make 20 cents profit. The next widget you make costs 90 cents and you sell it for $1 to make 10 cents profit. The next widget you can make for 95 cents.... and so on. You will continue to make widgets so long as you are making money. The same goes for labour. You will continue to hire workers so long as the make you money. You will stop hiring additional workers when the marginal product of labour is equal to wages.
How does a firm know when it can afford to hire more workers?
if the MRP is greater than a firms MC
What can happen if the MRP is greater then a firm's MC?
The firm can afford to hire more workers
What can happen if the MRP is greater than a firm's MC?
The firm can afford to hire more workers.
Can you get more than 9 workers on car town on facebook?
You will earn the ability to hire more workers as you level up. Eight workers is the maximum you can reach.
How does specialization by workers benefit the firm's employing them?
Workers who specialize become more efficient and thereby increase productivity.
What is a Major element of trickled down economics?
Cutting taxes on businesses will encourage them to hire more workers
Ideas is a major element of trickle down economics?
Cutting taxes on businesses will encourage them to hire more workers
How do you get workers on the game car town?
Level up and level up so u can get more workers just check the required lvl to hire another one
How might a firm increase its profits by raising its wages?
A firm might increase its profits by raising its wages to attract more qualified staff. The staff may stay longer and be more committed and good at their jobs as a result of higher pay. They will be happier which will result in increased customer satisfaction. The firm will make more money as a result of having more efficient workers.
What do i need to do to be a fixer in restaurant city?
You need workers, so click on one of them (or hire a new one, you can hire more workers by leveling up) and on the the bottom right you will see Janitor, Waiter, Bartender, and Chef. Click Janitor. He or she will clean your restaurant and fix your machines/functions. ~Racerjc :D
What ideas is a major element of trickle down economics?
Cutting taxes on businesses will encourage them to hire more workers
Why does the profit maximizing rule still apply when firms decide how many workers to hire?
Firms will continue to hire workers so long as one additional worker is able to make the firm an additional unit of profit. A competitive firm pays a wage that is equal to the marginal product of labour. Example: suppose hiring one more worker results in an increase in output of 1 unit. Now suppose that unit can be sold for $1 and that there are no other variable costs (think software.... nearly costless to produce once it has been created). What is the wage that the worker receives? The firm would be willing to hire the worker and pay them any wage that was less than or equal to $1. This is the same as the profit maximization rule. You would continue to hire workers until the last dollar spent on wages was exactly equal to the last dollar earned in sales (ie. zero profits). This is the exact same idea as profit maximization. If you can make 1 widget and it costs 80 cents and the you sell it for $1, you make 20 cents profit. The next widget you make costs 90 cents and you sell it for $1 to make 10 cents profit. The next widget you can make for 95 cents.... and so on. You will continue to make widgets so long as you are making money. The same goes for labour. You will continue to hire workers so long as the make you money. You will stop hiring additional workers when the marginal product of labour is equal to wages.
