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When a firm hires a worker for one hour the marginal benefit to that firm equals the?
Wiki User
∙ 12y ago
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.
Wiki User
∙ 12y ago
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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 happens to business as demand decreases?
expands and hires new employees
How much did Hires root beer cost in 1866?
Hires root beer was not available for sale in 1866. Charles Hire a pharmacist did not start retailing his Root Beer until 1876 at the Philadelphia Centennial Exhibition.
Who is the principle in real estate?
Principal is a legal term. The principal is the person or entity who hires another(via contract) to perform a task on the principal's behalf. These people are called agents. Therefore: Homeowner= Principal hires the... Real estate "Agent"
What companies are doing well despite the bad economy?
In Washington state amazon.com needs people for overtime all year around and they are struggling to get new hires.
What is marginal revenue product?
Marginal revenue product is the additional profit a firm gains when it hires an additional worker.
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
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.
Alternatives to outsourcing?
Rural sourcing, where a company or organization hires from states with a cost of labor that equals to the cost of outsourcing offshore is another alternative. The benefit is obvious - zero language barrier.
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A business can benefit when the business hires the help of a website expert who specializes in increasing the traffic of the website. The expert knows how to use the best key words to attract clicks
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Advantages and Disadvantages of Training and Development?
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Who hires recent cdl graduates in Alabama?
You want companies based in Alabama? I believe ABF is still based in that state. They'd hire you on as a dock worker first, though. If you don't mind doing flatbeds, I believe McElroy hires recent graduates. The company doesn't have to be based in Alabama or even have a terminal in Alabama to hire you, by the way.
Who hires felons in chandler AZ?
who hires felony in chandler az
How much money does a GM auto worker make?
$30 an hour plus full benefits and a pension. Part time workers and new hires make half that amount and don't get the same benefits or a pension.
