The firm’s profit maximizing rule in determining how many workers to hire. Concept Introduction: Profit Maximization: It is the ability of a business to achieve the highest level of profits within a short period of time with low operating expenses. Profit maximizing is achieved when a firm operates where the marginal revenue is equal to the marginal cost.

Question

It is easy to conclude that when hiring workers in the short run whose marginal. productivity rises, the average product of labor will rise as well. However, if workers productivity declines, average product of labor may still be rising. Explain why this may happen. (:

Answer 1

Question

Chapter 11, Problem 2P

To determine

The firm’s profit maximizing rule in determining how many workers to hire.

Concept Introduction:

Profit Maximization: It is the ability of a business to achieve the highest level of profits within a short period of time with low operating expenses. Profit maximizing is achieved when a firm operates where the marginal revenue is equal to the marginal cost.

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