Rule for optimal input usage

Assignment Help Microeconomics

Reference no: EM13137462

According to the rule for 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. It is well known that many companies have management training programs in which new trainees are paid relatively high starting salaries and are not expected to make substantial contributions to the company until after the program is over (programs may run between 6 to 18 months). In offering such training programs, is a company violating the optimality rule? Explain.

Reference no: EM13137462

Questions Cloud

Explain vector integral - stokes therom : Vector integral - stokes therom, Evaluate the line integral by stokes theorem (clock wise as seen by a person standing at the origin).

Discuss the term "cultural competence" : Discuss the term "cultural competence" and its implications for employees and organizations.

Evaluate the regression assumptions of linearity : Evaluate the regression assumptions of linearity and homoscedasticity by assessing your new residual plot. Be specific about your evaluation

Compute basic and diluted eps : Compute basic and diluted EPS for the year ended December 31, 2009.

Rule for optimal input usage : According to the rule for 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.

What are the number of shares par value per share : The market price of Sandals common stock is $150 on June 30. What are the number of shares, par value per share, and market price per share immediately after the 3-for-1 stock split?

Define self-concept. : Define self-concept. Explain how a positive self-concept will improve your communication. Define self-esteem. Explain how a positive self-esteem affects your communication

Calculate the gain or loss on the sale of the asset : On November 4, 2009, Blue Company acquired an asset (27.5 year residential real property) for $200,000 for use in its business. In 2009 and 2010, respectively, Blue took $642 and $5,128 of cost recovery.

Explain complex loading bending and compression : Complex loading (bending and compression), A steel chimney is 28m high, 1.4m external diameter, and 20mm thick. It is rigidly fixed at the base and is acted upon by a horizontal wind pressure of intensity 1.

User Account

All Pages