Why is the short-run demand curve for labor downward sloping

Reference no: EM132180320

Question: 1. Why does a profit-maximizing firm hire workers up to the point where the wage equals the value of marginal product? Show that this condition is identical to the one that requires a profit-maximizing firm to produce the level of output where the price of the output equals the marginal cost of production.

2. Why is the short-run demand curve for labor downward sloping?

3. What mix of inputs should be used to produce a given level of output?

Reference no: EM132180320

Questions Cloud

What is the elasticity of labor demand as the wage falls : Suppose there are two inputs in the production function-labor and capital-and that these two inputs are perfect substitutes. The existing technology permits.

What is the capital-skill complementarity hypothesis : What is the capital-skill complementarity hypothesis? Discuss the impact of the minimum wage when there are two sectors in the economy, the covered sector.

Does the given imply that the firm is maximizing profits : Suppose the firm is hiring labor and capital and that the ratio of marginal products of the two inputs equals the ratio of input prices.

Locate local a story where you believe an ethical dilemma : Explain, in a few sentences the story, the ethical dilemma you believe is going on in the story, and how you think it can be resolved.

Why is the short-run demand curve for labor downward sloping : Why does a profit-maximizing firm hire workers up to the point where the wage equals the value of marginal product? Show that this condition is identical.

Difference between cross-sectional and longitudinal designs : What is the difference between cross-sectional and longitudinal designs, and why are time-series designs like these particularly helpful in the study of crime?

Decide on the best option for solving the problem : You read over the assignment sheet and notice that your child is not including all of the required items in the project.

What effect would the price reduction have on total profit : If the price elasticity of demand was in fact - 0.5, and assuming the same co t data a above, what effect would the price reduction have on total profit?

How is the psbr related to the budget deficit : The UK tax system discriminates heavily against earned income but leaves wealth relatively untouched. Why is this? How is the PSBR related to the Budget deficit

User Account

All Pages