--%>
Assignment Help - homework help

Hiring additional workers exceeds the profit maximization

One purpose that firms hire labor at the point where w is equal to P x MPPL is: (1) if w < P x MPPL, the cost (w) of hiring additional workers exceeds the gains (P x MPPL) of hiring them, therefore they would hire fewer workers. (2) when w > P x MPPL, the cost (w) of hiring additional workers is less than the benefits (P x MPPL) of hiring them, thus they would hire more workers. (3) when w < P x MPPL, the cost (w) of hiring additional workers equals the benefits (P x MPPL) of hiring them, therefore they have the right number of workers. (4) when w > P x MPPL, the cost (w) of hiring additional workers exceeds the benefits (P x MPPL) of hiring them, hence they would hire less workers.

Can someone explain/help me with best solution about problem of Economics...

   Related Questions in Managerial Economics

  • Q : Credentialism and Occupational Licensing

    Occupational licensing often requires qualifications with small relevance for performance in a specific position before an individual can legally be hired. Artificial and inefficient barriers to the practice of specific occupations, such as dog groome

    		•
  • Q : Lower Wage Differentials in Occupation

    If all else regarding two occupations are relatively equal, then wages tend to be lower for jobs which: (1) require important education and training. (2) expose the worker to bad weather. (3) require extended periods away from home. (4) pose health and safety hazards

    		•
  • Q : What are the characteristics of a

    What are the characteristics of a business cycle?

    		•
  • Q : Illustrates the pricing policies briefly

    Illustrates the pricing policies briefly?

    		•
  • Q : Illustrates the important areas of

    Illustrates the important areas of managerial economics as a tool for decision making?

    		•
  • Q : Relation between Average Revenue

    Illustrates the relation between Average Revenue, Total Revenue and Marginal Revenue?

    		•
  • Q : Requirement of Screening Boris operates

    Boris operates a local landscaping company, needs each potential employee to lift a 200 pound tree before being hired whole-time. This obligation is an example of: (1) signaling. (2) discrimination. (3) screening. (4) derived demand. (5) automation.

    Q : Substitution Consequence on Labor Supply

    The substitution consequence on labor supply decision of an individual is more powerful than the income effect while: (1) higher wage rates result within increased hours worked. (2) cuts in wage rates yield discouraged worker effects. (3) the supply c

    		•
  • Q : Differentiate between Private Cost and

    Differentiate between Private Cost and Social Cost.

    		•
  • Q : Marginal revenue product and marginal

    When the marginal revenue product of the last worker hired through a large firm is fewer than its marginal resource cost, in that case the firm: (i) increases profits if this lies off a few workers. (ii) operates in a region of decrea

    		•