Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
B → D → A → C
B
D → A → B → C
C
A → C → D → B
D
B → A → C → D
Understanding the Answer
Let's break down why this is correct
Answer
When a firm thinks about changing how many workers to hire, it first needs to analyze changes in worker productivity. This means looking at how much more work each worker can do, which helps the firm understand the value of their labor. Next, the firm determines the marginal product of labor, which is the additional output from hiring one more worker. After that, the firm evaluates the marginal revenue product of labor, which considers how much money that extra output will bring in. Finally, based on all this information, the firm adjusts its hiring decisions to either hire more workers or reduce the number of employees, ensuring they match their needs in the market.
Detailed Explanation
First, a firm looks at how productive workers are. Other options are incorrect because This option suggests starting with the revenue product before checking productivity; This option skips analyzing productivity and jumps to hiring decisions.
Key Concepts
Marginal Product of Labor
Demand for Labor
Market Conditions
Topic
Demand and Supply in Labor Markets
Difficulty
hard level question
Cognitive Level
understand
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