The Rational Rule for Employers says to hire more workers ifO the cost of workers is less than the revenue of workers.output increase is sought and wage is falling.the marginal revenue product is greater than (or equal to) the wage.worker skill exceeds worker wage.

Answer: Correct option: option 3 (the marginal revenue product is greater than (or equal to) the…

The Rational Rule for Employers says to hire more workers if the cost of workers is less than the revenue of workers. output inerease is sought and wage is falling. the marginal revenue product is greater than (or equal to) the wage. worker skill exceeds worker wage.

The Rational Rule for Employers says to hire more workers if the cost of workers is less than the revenue of workers. output inerease is sought and wage is falling. the marginal revenue product is greater than (or equal to) the wage. worker skill exceeds worker wage.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter19: The Problem Of Adverse Selection

Section: Chapter Questions

Problem 2MC

See similar textbooks

Related questions

Q: How much is the marginal revenue of the product of labor if the price of the product (P) is $ 12 and…

A: Marginal revenue of product = Price* Marginal Product

Q: Domestic income is $38,000 million, compensation of employees is $17,000 million and mixed income is…

A: The information being given is:- Domestic income = $38,000 million Compensation of employees =…

Q: Calculate the value of NDPFC if compensation of employees is $2300, Operating surplus is $500 and…

A: The information being given is:- Compensation of employees = $2300 Operating surplus = $500 Mixed…

Q: Geralt works for Stregobor as a witcher earning $87,000 a year. He decides to quit his job and…

A: Economic cost includes both implicit costs and explicit costs. Implicit costs are those costs which…

Q: croom employees who unpack and prepare clothing for displays are mostly young Asians and an…

A: Option 2 Race

Q: If domestic income is $13,000 million, compensation of employees is $2000 million and mixed income…

A: The Given information is as follows:- Domestic income = $13,000 Compensation of employees = $2000…

Q: A right-to-work law makes it illegal for employers to refuse to hire union workers. union membership…

A: Option (b) is correct.

Q: A firm sells bagels for £0.51 each. With 6 workers the firm produces 42 dozen per hour, and with 7…

A: We have Price of product, P=.51 and there are different level of production with different amount of…

Q: Which of the following is not one of the Lources of imperfections in the labour mar O The existence…

A: Labor markets are rarely totally competitive in the real world. Because workers or businesses…

Q: _______ Herzberg cited ______________ as a cause of dissatisfaction.a. working conditionsb.…

A: The employers are the those entities in an economy who bring together many factors of production…

Q: 58. Courts tend to look more favorably at companies with alleged discrimination when: a. a firm's…

A: 58. In an economy, organizations can be considered as the economic drivers that provide employment…

Q: Cld xpenses as real or transfer expenditures and istify your answer: ) Government scholarship for…

A: Transfer expenditure is the money spent by the government for which it doesnot expect income in…

Q: Firm would hire 20,000 workers if the wage rate is $12 but will hire 10,000 workers if the wage rate…

A: In the firm A:At the wage rate, $12 the number of workers hired = 20000 workers.At the wage rate of…

Q: . A factor of production, whose supply is fixed in the short tun, may get additional earnings. These…

A: To find : What is these type of earning referred to as.

Q: pread because: Eelect one: it helps to retain current skilled -mployees since they are not poached…

A: Diminishes awareness of outside market compensation rates. Broadbanding prompts the absence of…

Q: Employees have the right to free speech. However, there are limitations. Just grounds for dismissal…

A: Organizational constraints are work conditions that interfere with an employee's motivation or…

Q: True or false The marginal revenue product of labor is the extra revenue associated with the last…

A: Revenue The money received from routine business activities is referred to as revenue, sales, or…

Q: employment, the public policy exception prohibits employers from firing employees engaged in…

A: The state of in turn having a job that is paid in nature depicts the concept of employment. An…

Q: The wage an employer will pay is limited by Question 4 options: how much the employer likes…

A: The wage rate that an employer pays depends on one very important factor.

Q: If the price of the product sells for $1 and the Wage about the workers this firm is hiring?…

A: TP is the total product produced by the using labour input where capital is constant. TP initially…

Q: a. Companies that engage in workplace discrimination are likely to have lower profits when they…

A: [1] Companies that engage in workplace discrimination are likely to have lower profits when they…

Q: MC Qu. 16-35 (Algo) Refer to the given table... Total Product Employnent Product Price $ 5 12 5. 22…

A: Total Cost = Employment * Wage Total Revenue = Total product * Product price Profit = Total Revenue…

Q: Find the compensation of employees given :- Domestic Income = $30,000 Operating surplus = $16,000…

A: The data presented In the question above is:- Domestic Income = $30,000 Operating surplus =…

Q: Bell’s Furniture, assemblers are paid according to the following differential piece rate scale: 1−20…

A: Range Number of dresses Rate Cost (No. of dresses*Rate) 1-20 20 7 140 21-30 10 9.50 95 31-47…

Q: If operating surplus is $3000 million, compensation of employees is $2000 million and mixed income…

A: The data presented in the question above is:- Operating surplus = $3000 million Compensation of…

Q: All workers start working for a particular firm when they are 20 years old. The value of each…

A: The mandatory retirement age is often calculated by considering the accumulated value of the…

Q: Calculate domestic income from the following:- Compensation of employees = $4000 million Operating…

A: The data presented in the question is as follows:- Compensation of employees = $4000 million…

Q: 4. Partnership S has the accompanying compensation scale for a worker. Base compensation rate…

A: Compensation refers to the monetary reward given to an employee in exchange for their services or…

Q: A firm sells bagels for £0.51 each. With 11 workers the firm produces 99 dozen per hour, and with 13…

A: *SOLUTION :-

Q: Employees under non-fixed term contracts are not entitled to a wage or a salary. * O True O False

A: Employees under non fixed term contracts are entitled to a wage or salary. Therefore, this statement…

Q: Due to there being discrepancies between the productivity and resource offerings (i.e., education,…

A: Marginal revenue product (MRP) is the marginal revenue (MR) created due to adding one extra unit of…

Q: uantity of Labor Supplied Wage Total Cost of Labor Marginal Cost of Labor…

A: Under the monopsony , there is single buyer in the market and Monopsony equilibrium condition is…

Q: For a corripetitive firm workers marginal revenue product equals the marginal product of labor times…

A: The answer is - wage rate

Q: In some markets plumbers have a choice of joining unions or working as nonunion plumbers. The total…

A: WNU=30-0.04LNU∴0.04LNU=30-WNU∴LNU=750-25WNUWU=30-0.1LU∴0.1LU=30-WULU=300-10WU

Q: explain wages discrimination between age, group, sex in country Malaysia

A: Wages Discrimination: It is a situation wherein different individuals working at the same level for…

Q: Calculate the value of NDPFC If :- Compensation of employees = $600 million Operating surplus =…

A: The given information is as follows:- Compensation of employees = $600 million Operating surplus =…

Q: If NDPFC is $300 million, compensation of employees is $60 million, operating surplus is $30 million…

A: We are given with the information is:- NDPFC = $300 MILLION Compensation of employee = $60 million…

Q: What happens if the government sets a minimum wage in a monopsony labor market? The marginal factor…

A: A monopsony refers to a market where there is only one buyer. The market is called an oligopsony…

Q: nas worked. A typical case Luba works on commission and has a weekly pay period. One week, she was…

A: Commission = 150 Worked hours = 25 Minimum Wage = 14.25

Q: Shermar is willing to bear the risk involved in designing and marketing a new product. This is an…

A: Answer: When an individual uses his idea to create a product and also he/she is ready to take the…

Q: The marginal product of hiring a fourth worker is 40 units of output. The wage rate is $15, and the…

A: The marginal product (MP) of worker is the additional increase in the total product when one more…

Q: Quantity of Labor Supplied Wage Total Cost of Marginal Cost of Marginal Revenue Labor Labor Product…

A: The effort put in by an individual to bring a product or service to the market is referred to as…

Q: to the text In an effort to increase business in 2016, Nir-Van-A (a company that provides van…

A: In the mentioned question we have to calculate the labor cost margin for both the years separately.…

Q: A representative firm which only can survive for one period. It has the following technology: Y =…

A: Profit of any firm is can be given by the difference between the total revenue of the firm and the…

Question

The Rational Rule for Employers says to hire more workers if
O the cost of workers is less than the revenue of workers.
output increase is sought and wage is falling.
the marginal revenue product is greater than (or equal to) the wage.
worker skill exceeds worker wage.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Kindly help solve and explain all steps and intuition. Thank you! A firm is considering hiring a worker and providing the worker with general training. The training costs $1,000, and the worker’s MRPL (marginal revenue product of labor) during the training period is $3,000. If the worker can costlessly move to another employer in the post-training period and that employer will pay a wage equaling the new MRPL, how much will the training firm pay the worker in the training period?
Critically, provide four criticisms on the shortcomings of paying workers solely firm’s hiring and wage payment rule
What may be a consequence of laws on labor unions and employment in Western Europe that make it difficult to terminate employees? Select one: a. companies may choose to hire many employees b. companies may be reluctant to hire many employees c. employee compensation decreases d. succession planning becomes less relevant
Q51 A farmer named Chris Freeland who has fixed amounts of land and capital finds that total product is 24 for the first worker hired, 32 when two workers are hired, 37 when three are hired, and 40 when four are hired. The farmer's product sells for $5 per unit, and the wage rate is $13 per worker. How many workers should Chris Freeland the farmer hire? Multiple Choice 3 2 4 1 7.
Wage Rate A W O Single Firm ic 5 Employment Multiple Choice O is Oabc. O is OWbc. Wage Rate Se Refer to the diagrams. The profit-maximizing firm's total wage cost is Wab. O Market cannot be determined. D S 500 Employment Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
explain wages discrimination between age, group, sex in country Malaysia
For a corripetitive firm workers marginal revenue product equals the marginal product of labor times the: wage rate. wage rate. price of the firm's product interest rate firm's total revenue
A perfect competitor charges a price of $30. The first worker he would hire would have a marginal physical product of 20, the second worker he would hire would have a marginal physical product of 18, the third worker would have a marginal physical product of 16, and the fourth worker would have a marginal physical product of 14. (a) How many workers would he hire if the wage rate were $540? worker(s) hired How much would his wage bill be? $ wage bill (b) How many workers would he hire if the wage rate were $470? worker(s) hired How much would his wage bill come to? $ wage bill.
After hiring the third emplyee, John was able to produce 110 units instead of 80 units without the third employee. The price of each unit is $10. What is the Marginal Revenue Product of the third employee. $800 $1100 $3000 $1900 Not Enough Information
Statement: Putski Concrete Co. hires one additional worker. Output goes up by 10 units per day. This must have been a good (i.e. profit-maximizing) hiring decision. If you believe the statement is false, you need to correct it. Your answer: Ture/False? Note:- Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality to avoid receiving a downvote. Take care of plagiarism. Answer completely. You will get up vote for sure.
A company has 700 employees who work 140 hours a month each. Each worker earns $37 per hour. There is a profitable project the company would like to start, but it would require an additional 42,000 working hours within three months to be completed, and all the employees are fully loaded with other projects. The company does not want to hire new staff; they would like the project to be completed by the current workforce instead. Given that the wage elasticity of labor supply is 0.65, calculate the hourly wage the company should offer its employees to encourage them to work on the new project.
Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator who chooses the best proposal (effectively giving one side or the other $1 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of Employer Low Salary Offer High Salary Offer Employee Walks Employer gets 0 Employee gets 0 Employee Accepts Employer gets 100 Employee gets 75 Employee Walks Employer gets 0 Employee gets 0 Employee Accepts Employee gets 100 Employer gets 75 $200,000) who is effective at preparing the proposal in the best light. If neither hires lawyers or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win three-quarters of the time. 1. Diagram this simultaneous-move game. 2. What is the Nash equilibrium of the game? 3. Would the sides want to ban lawyers?