Web2) To maximize profit, a firm hires labour until A) there is no more labour available at the market wage rate.B) they can sell that labour for no more than what they paid for it. C) the wage rate paid to the labour equals the marginal cost of production. WebA profit-maximizing, competitive firm for which the marginal product of labor is diminishing also experiences a downward-sloping demand for labor. 1. Typically, as a firm hires additional workers, the marginal product of labor decreases, and the value of the marginal product of labor decreases.
Economics 504 - University of Notre Dame
WebQuestion: 1. A profit-maximizing firm hires labor up to the point where A. Price of the product equals the value of marginal product. B. Price of the product equals the wage rate. C. The wage rate multiplied by the quantity of labor equals the marginal product. D. The wage rate equals the value of marginal product. E. Marginal 1. WebFirms maximize profit when marginal costs equal marginal revenues, and in the labor market, this means that firms will hire more employees until the wage rate (marginal cost of labor) equals the MRPL. At a price of $10, the company will hire workers until the last worker hired gives a marginal revenue product of $10. イオン 映画 岡山
Labor Demand and Supply in a Perfectly Competitive Market - CliffsNotes
WebQuestion: MC 6 A competitive, profit-maximizing firm hires labour until the: a) marginal product of labour equals the wage. b) real wage equals the real rental price of capital c) wage equals the rental price of capital. WebSince a profit-maximizing firm hires labor until MPL = W/P, the labor demand function in this case is Ld = 0.25K/ (W/P)2 A. Suppose the economy has 1,000 units of capital and a labor force of 1,000 workers. What is the This problem has been solved! You'll get a detailed solution from a subject matter expert that helps you learn core concepts. WebThe perfectly competitive firm's profit‐maximizing labor‐demand decision is to hire workers up to the point where the marginal revenue product of the last worker hired is just equal to the market wage rate, which is the marginal cost of this last worker. イオン映画 子供料金