Optimal condition of hiring labor.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 13, Problem 1RQ

To determine

Optimal condition of hiring labor.

Expert Solution & Answer

Explanation of Solution

When the marginal revenue of labor equals to marginal cost of labor, it is the optimal situation to hire workers in the firm. To increase the extra unit of output, the firm uses one more unit of labor. The optimal situation to hire labor is given below:

MR=WMPL

The equation can be remarriage by multiplying both sides of the equation by the marginal product of labor.

MR×MPL=W

This equation states that a firm can hire a worker until marginal revenue product of labor is equal to marginal cost of labor to the firm.

Economics Concept Introduction

Marginal revenue: Marginal revenue refers to the amount of extra revenue attained in the process of increasing one more unit of output.

Marginal product of labor: Marginal product of labor is the additional output a firm produces as a result of employing an extra unit of labor.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

1) Use the supply and demand schedules to graph the supply and demand functions. Find and show on the graph the equilibrium price and quantity, label it (A). P Q demanded P Q supplied 0 75 0 0 5 65 5 0 10 55 10 0 15 45 15 10 20 35 20 20 25 25 25 30 30 15 30 40 35 40 5 0 35 40 50 60 2) Find graphically and numerically the consumers and producers' surplus 3) The government introduced a tax of 10$, Label the price buyers pay and suppliers receive. Label the new equilibrium for buyers (B) and Sellers (S). How the surpluses have changed? Give the numerical answer and show on the graph. 4) Calculate using midpoint method the elasticity of demand curve from point (A) to (B) and elasticity of the supply curve from point (A) to (C).

Four heirs (A, B, C, and D) must divide fairly an estate consisting of three items — a house, a cabin and a boat — using the method of sealed bids. The players' bids (in dollars) are: In the initial allocation, player D Group of answer choices gets no items and gets $62,500 from the estate. gets the house and pays the estate $122,500. gets the cabin and gets $7,500 from the estate. gets the boat and and gets $55,500 from the estate. none of these

Jack and Jill are getting a divorce. Except for the house, they own very little of value so they agree to divide the house fairly using the method of sealed bids. Jack bids 140,000 and Jill bids 160,000. After all is said and done, the final outcome is Group of answer choices Jill gets the house and pays Jack $80,000. Jill gets the house and pays Jack $75,000. Jill gets the house and pays Jack $70,000. Jill gets the house and pays Jack $65,000. none of these

Answer 2

Question

Chapter 13, Problem 1RQ

To determine

Optimal condition of hiring labor.

Expert Solution & Answer

Explanation of Solution

When the marginal revenue of labor equals to marginal cost of labor, it is the optimal situation to hire workers in the firm. To increase the extra unit of output, the firm uses one more unit of labor. The optimal situation to hire labor is given below:

MR=WMPL

The equation can be remarriage by multiplying both sides of the equation by the marginal product of labor.

MR×MPL=W

This equation states that a firm can hire a worker until marginal revenue product of labor is equal to marginal cost of labor to the firm.

Economics Concept Introduction

Marginal revenue: Marginal revenue refers to the amount of extra revenue attained in the process of increasing one more unit of output.

Marginal product of labor: Marginal product of labor is the additional output a firm produces as a result of employing an extra unit of labor.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 13, Problem 1RQ

To determine

Optimal condition of hiring labor.

Expert Solution & Answer

Explanation of Solution

When the marginal revenue of labor equals to marginal cost of labor, it is the optimal situation to hire workers in the firm. To increase the extra unit of output, the firm uses one more unit of labor. The optimal situation to hire labor is given below:

MR=WMPL

The equation can be remarriage by multiplying both sides of the equation by the marginal product of labor.

MR×MPL=W

This equation states that a firm can hire a worker until marginal revenue product of labor is equal to marginal cost of labor to the firm.

Economics Concept Introduction

Marginal revenue: Marginal revenue refers to the amount of extra revenue attained in the process of increasing one more unit of output.

Marginal product of labor: Marginal product of labor is the additional output a firm produces as a result of employing an extra unit of labor.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 13, Problem 1RQ

To determine

Optimal condition of hiring labor.

Expert Solution & Answer

Explanation of Solution

When the marginal revenue of labor equals to marginal cost of labor, it is the optimal situation to hire workers in the firm. To increase the extra unit of output, the firm uses one more unit of labor. The optimal situation to hire labor is given below:

MR=WMPL

The equation can be remarriage by multiplying both sides of the equation by the marginal product of labor.

MR×MPL=W

This equation states that a firm can hire a worker until marginal revenue product of labor is equal to marginal cost of labor to the firm.

Economics Concept Introduction

Marginal revenue: Marginal revenue refers to the amount of extra revenue attained in the process of increasing one more unit of output.

Marginal product of labor: Marginal product of labor is the additional output a firm produces as a result of employing an extra unit of labor.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 13, Problem 1RQ

To determine

Optimal condition of hiring labor.

Expert Solution & Answer

Explanation of Solution

When the marginal revenue of labor equals to marginal cost of labor, it is the optimal situation to hire workers in the firm. To increase the extra unit of output, the firm uses one more unit of labor. The optimal situation to hire labor is given below:

MR=WMPL

The equation can be remarriage by multiplying both sides of the equation by the marginal product of labor.

MR×MPL=W

This equation states that a firm can hire a worker until marginal revenue product of labor is equal to marginal cost of labor to the firm.

Economics Concept Introduction

Marginal revenue: Marginal revenue refers to the amount of extra revenue attained in the process of increasing one more unit of output.

Marginal product of labor: Marginal product of labor is the additional output a firm produces as a result of employing an extra unit of labor.

Answer 6

Chapter 13, Problem 1RQ

To determine

Optimal condition of hiring labor.

Expert Solution & Answer

Explanation of Solution

When the marginal revenue of labor equals to marginal cost of labor, it is the optimal situation to hire workers in the firm. To increase the extra unit of output, the firm uses one more unit of labor. The optimal situation to hire labor is given below:

MR=WMPL

The equation can be remarriage by multiplying both sides of the equation by the marginal product of labor.

MR×MPL=W

This equation states that a firm can hire a worker until marginal revenue product of labor is equal to marginal cost of labor to the firm.

Economics Concept Introduction

Marginal revenue: Marginal revenue refers to the amount of extra revenue attained in the process of increasing one more unit of output.

Marginal product of labor: Marginal product of labor is the additional output a firm produces as a result of employing an extra unit of labor.

Answer 7

Chapter 13, Problem 1RQ

To determine

Optimal condition of hiring labor.

Answer 8

Expert Solution & Answer

Explanation of Solution

When the marginal revenue of labor equals to marginal cost of labor, it is the optimal situation to hire workers in the firm. To increase the extra unit of output, the firm uses one more unit of labor. The optimal situation to hire labor is given below:

MR=WMPL

The equation can be remarriage by multiplying both sides of the equation by the marginal product of labor.

MR×MPL=W

This equation states that a firm can hire a worker until marginal revenue product of labor is equal to marginal cost of labor to the firm.