Company violating optimality rule


According to the rule of optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company. We know that many companies have management training programs in which new trainees are paid relatively high starting salaries and are not expected to make substantial contribution to the company until the program is over (it may take 6 to 18 months). In offering such training programs, is a company violating the optimality rule? Explain

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Macroeconomics: Company violating optimality rule
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