Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
C → A → B → D
B
A → B → D → C
C
A → C → B → D
D
C → D → A → B
Understanding the Answer
Let's break down why this is correct
Answer
To determine the optimal number of employees to hire using the Marginal Revenue Product of Labor (MRPL), you start by calculating the MRPL for each additional worker. This means figuring out how much extra revenue each worker brings to the business. Next, you compare this MRPL to the wage rate, which is what you pay each worker. If the MRPL is higher than the wage, it makes sense to hire more workers; if it’s lower, you might need to hire fewer. Finally, you adjust your hiring based on the revenue generation to ensure that you are maximizing profits while keeping costs in check.
Detailed Explanation
First, you find out how much extra money each worker brings in by calculating MRPL. Other options are incorrect because This option suggests calculating MRPL after determining total productivity; This option puts total productivity before MRPL.
Key Concepts
Marginal Revenue Product of Labor (MRPL)
Labor Supply and Demand
Economic Efficiency
Topic
Labor Productivity and Decision-Making
Difficulty
hard level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.