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Author Question: Describe the decision for a perfectly competitive employer in determining the profit maximizing ... (Read 53 times)

futuristic

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on: Jun 30, 2018
Describe the decision for a perfectly competitive employer in determining the profit maximizing quantity of labor to employ.

Question 2

A decrease in gross domestic product (GDP) necessarily means that consumer welfare has decreased.
 a. True
  b. False
  Indicate whether the statement is true or false


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jlaineee

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Reply #1 on: Jun 30, 2018
Answer to Question 1

The profit maximizing quantity of labor to employ exists at that quantity where the marginal revenue product of labor (MRP) equals the wage rate (W). The MRP equals the marginal product of labor multiplied by the price of the output produced. This information as well as the wage is required to decide the optimal number of workers to employ. If the MRP > W then employ more workers until they're equal.

Answer to Question 2

False


futuristic

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Reply 2 on: Jun 30, 2018
Wow, this really help

hramirez205

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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