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What is the additional revenue that accrues to a firm when an additional worker is hired?
marginal revenue product
Causes of increasing and diminishing returns?
Each additional worker has less and less tools and equipments to work with consequently , the productivity of marginal worker eventually decreases
How might firms BEST use marginal analysis to determine price and output when there are additional costs related to hiring a new worker?
Marginal analysis would allow the company to identify how much more money they would have to make in order to afford another employee. It would help them figure out if hiring a new worker is the best course of action.
When a firm hires a worker for one hour the marginal benefit to that firm equals the?
The marginal benefit will be the value added by that one hour of work. Say the worker is an economist and produces $50 worth of service work in that hour for the firm. The marginal benefit would be $50. If the worker is in production and spins $10 worth of thread into fabric the firm can sell for $100, then the value added (and the marginal benefit) is $90.
Saying the marginal costs are greater than the marginal benefits is the same as saying?
Marginal costs and marginal benefits are discussing the conditions for profit maximization. This statement can only have further explanation if it is clarified under circumstantial economic conditions. One of the conditions is that the firm is not a monopoly and that there is competition that keeps the price of the good at a single price. Another condition is that there are diminishing returns to labor and production. This means that resources are scarce for production so it becomes more costly to produce more because there are more constraints to resources and there is a limited labor skill pool. In a competitive market the wage is also assumed to be equal for everyone who is employed to do the same job. Thus, if the marginal costs are greater than the marginal benefits then the profit maximizing equation for a firm or individual is not in balance. The profit maximizing condition for a firm or individual is marginal costs equal marginal benefits. For example in the context of a firm, the marginal costs of producing is the wage it must pay to each extra worker it hires and the benefits are the goods that the worker produces for the firm to sell. Assuming that all workers are given the same wage, the firm should hire as many workers until the marginal revenue the worker produces (Marginal product*price) is equal to the wage. This implies price important because price determines how much revenue the worker makes from the product. If the firm is producing where marginal cost is above marginal benefit the firm is losing money and should get rid of some workers. If the firm has control over the price, like in a monopoly, then the profit maximization condition is a little different. In the case of a monopoly the demand curve is not the same as the marginal revenue curve. This is because in a monopoly the firm has to decrease price in order to sell more of the good because they are the only supplier. Marginal revenue is derived from the demand but the profit maximization condition is still marginal cost equals marginal benefits but marginal benefits does not equal the demand curve.
What is marginal revenue product?
Marginal revenue product is the additional profit a firm gains when it hires an additional worker.
What is the additional revenue that accrues to a firm when an additional worker is hired?
marginal revenue product
What is additional revenue a firm gains when it hires an additional worker called?
Marginal Revenue Product
What is the additional revenue a firm gains when it hires an additional worker called?
Marginal Revenue Product
Causes of increasing and diminishing returns?
Each additional worker has less and less tools and equipments to work with consequently , the productivity of marginal worker eventually decreases
If one worker produces four units and the addition of another worker produces a total yield of 10 units the marginal production of second worker is 2?
Marginal production over the origianl worker is 2. The second worker is actually producing 6, but only 2 over the 4 of the origianl worker.
How might firms BEST use marginal analysis to determine price and output when there are additional costs related to hiring a new worker?
Marginal analysis would allow the company to identify how much more money they would have to make in order to afford another employee. It would help them figure out if hiring a new worker is the best course of action.
When a firm hires a worker for one hour the marginal benefit to that firm equals the?
The marginal benefit will be the value added by that one hour of work. Say the worker is an economist and produces $50 worth of service work in that hour for the firm. The marginal benefit would be $50. If the worker is in production and spins $10 worth of thread into fabric the firm can sell for $100, then the value added (and the marginal benefit) is $90.
What is the change in output from adding one more worker called?
marginal product of labor
Utility man job description?
Utility workers keep utility systems, like electricity, gas, and water running well. The job description varies on which utility the worker is attending to.
What is the concept of marginal productivity?
Is the change on the output of hiring one more worker as opposed to the last worker who was hired or fired. As a result which measures the output of the margin.
How do companies determine wages for employees?
By the equilibrium between supply and demand for workers
