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What is the additional revenue that accrues to a firm when an additional worker is hired?
Wiki User
∙ 10y ago
marginal revenue product
Wiki User
∙ 10y ago
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Who does a real estate worker work for?
A real estate worker who is not a real estate agent can work for themselves and be a subcontractor or work for a real estate office(broker) and work directly for the owner. The difference will be how this individual pays taxes and gets paid. So there is a difference in your worker relationship. This is established when you are hired.
What is the major trade-off in capacity planning?
A major trade off in capacity planning is the attitude of the worker. A business can have over 100 workers, but it means nothing if those 100 workers do not do the job they were hired to do.
Briefly outline the theory of marginal revenue productivity and then examine the criticisms of the theory?
Workers are needed for the output they are required to produce. We say that labour as a factor input is a derived demand. When firms see increasing demand for their products, they will need to employ extra workers and thus the demand for labour increases. Demand for labour and the market wage rate There is normally an inverse relationship between the demand for labour and the wage rate that the firm will have to pay for each additional worker. If wages are high, it is more costly to hire extra employees. When wages are lower, labour becomes cheaper than using capital equipment and it becomes more attractive and affordable for the business to take on more employees. Remember that firms are aiming to maximise profits. They will use the factor of production (labour or capital) that does the job as efficiently as possible for the lowest possible cost. Marginal Revenue Product Marginal revenue productivity (MRP) is a theory of wages where workers are paid the value of their marginal revenue product to the firm. MRP theory suggests that wage differentials result from differences in labour productivity and the value of the output that the labour input produces MRP theory is based on a competitive labour market and the theory rests on a number of key assumptions that are unlikely to exist in the real world. (In reality, most labour markets are imperfect, one of the reasons for earnings differentials between occupations) * Workers are homogeneous * Firms have no buying power when demanding workers * There are no trade unions * The productivity of each worker can be clearly measured * The supply of labour is perfectly elastic. Workers are occupationally and geographically mobile and can be hired at a constant wage rate Marginal Revenue Product (MRP) measures the change in total revenue for a firm as a result of selling the output produced by an extra worker. MRP = Marginal Physical Product x Price of Output per unit ILLUSTRATING THE LABOUR DEMAND CURVE In the left hand diagram, when there is a fall in the wage rate from W1 to W2, the firm will expand employment from E1 to E2. This is because the labour input has become relatively cheaper for a given level of productivity, compared to other inputs. A rise in the wage rate from W1 to W3 causes a contraction of labour demand. Shifts in the marginal revenue product of labour Marginal revenue productivity of labour will increase when there is (a) an increase in labour productivity and/or (b) an increase in demand for the firm's output which causes higher prices and raises the value of output produced by the workforce. The right hand diagram shows how this causes an outward shift in the labour demand curve. For a given wage rate W1, a profit maximising firm will employ more workers. Total employment in the market will rise. Problems with marginal revenue productivity theory Marginal revenue productivity cannot be used as a valid basis for discussing labour demand for all types of workers. In many cases it is hard to objectively measure productivity because no physical output is produced by the workforce. Even if productivity can be measured, the output produced may not be sold at a market price. This makes it hard to place an exact valuation on the output of each extra worker. In other examples, wages may be set independently of the state of labour demand. Public sector workers may have their pay set directly by government. Marginal revenue product is useful in explaining the demand for labour in many occupations. But for a fuller explanation of wage determination and the existence and persistence of wage differentials, we must focus more on the supply side of individual labour markets.
A firm will only employ additional workers to what point?
When the marginal gains from hiring that employee are less than the cost of the employee. I.e. if the employee costs $40,000, but the firm only nets $30,000, that employee will not be hired. _____ Theoretically, when the value produced by that worker, or their return on investment isn't high enough... but that gets mixed up with a lot of political stuff plus a desire to make money without regard to improvement of the product, so sometimes the resultant value isn't even factored in. Spending is just frozen unless it inhibits the decision-maker's personal goals.
What is the difference between deployment and employment?
deployment is putting them into a situation and employment is where you get hired for a job
Is it possible to get hired as a nyc sanitation worker if you have a dwi on your driving record?
No. You will not be hired.
What is a person who is hired to replace a striking worker called?
A scab.
What is a non-union worker hired to replace a striking employee?
A good employee!
What a freelance worker?
this person has no boss and works under contract by whomever hired him/her.
A person hired to do the work of a STRIKER?
Scab. Or, in more polite terms, replacement worker.
What does it mean for a worker to be hired on a pprobationary basis?
It means that the workers ability to do a job is unknown. So the worker has to prove his skill and competence before being formally hired on full time. Many companies have a 3 month probationary period.
What is the concept of margin?
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.
What salary would you expect from being a child social worker?
According to Simply Hired, the average salary for a pediatric social worker is $52,000 annually.
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 you clean the temple of Poseidon on Mythology island?
To clean the temple of Poseidon on Mythology Island in Poptropica, you need to find and use a mystical item called the Poseidon's Trident. This trident allows you to clear the debris inside the temple and restore it to its former glory. You can obtain the trident by completing tasks or puzzles related to the mythological story of Poseidon.
Is there another word for workers?
They can be called employees, and in the corporate arena can be referred to as Human Capital. However, it depends in what sense your using the word. Viper1
When a firm hired its tenth worker its factory output increased by four units per month Would you expect the firm's output to increase by eight more units per month if the firm hired two more wo?
Depending on the marginal output of the workers at that level of output, an additional two could increase output my more than 8, exactly eight, or less than 8 units.
