n 2018, General Motors (GM) announced that it would reduce employment by 14,000 workers. a. What does this decision reveal about how GM viewed its marginal revenue product (MRP) and marginal resource cost (MRC)? O The MRC of those 14,000 workers was negative. O The MRC of those 14,000 workers was less than the MRP. O The MRP of those 14,000 workers was negative. The MRC of those 14,000 workers was greater than the MRP. b. Why didn't GM reduce employment by more than 14,000 workers or by fewer than 14,000 workers? The company wanted to set the labor level where MRC equaled MRP to maximize profits. O The company wanted to set the labor level where MRC equaled MRP to maximize revenue. O This was what the board of directors voted to do. It lowered GM's cost enough to make some profit.

n 2018, General Motors (GM) announced that it would reduce employment by 14,000 workers. a. What does this decision reveal about how GM viewed its marginal revenue product (MRP) and marginal resource cost (MRC)? O The MRC of those 14,000 workers was negative. O The MRC of those 14,000 workers was less than the MRP. O The MRP of those 14,000 workers was negative. The MRC of those 14,000 workers was greater than the MRP. b. Why didn't GM reduce employment by more than 14,000 workers or by fewer than 14,000 workers? The company wanted to set the labor level where MRC equaled MRP to maximize profits. O The company wanted to set the labor level where MRC equaled MRP to maximize revenue. O This was what the board of directors voted to do. It lowered GM's cost enough to make some profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Economics Question
Which of the following most directly decreases profits if nothing else changes? O Changing your wardrobe O Giving your workforce a raise O Reducing costs O Lowering price
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H7
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