Asked by Natalia Montenegro on May 23, 2024
Verified
Rob was the last worker hired by a firm that is competitive in the labor market. The labor market always is in equilibrium. Rob's wage is $30 per hour. When Rob was hired, the firm's output increased by 4 units per hour as a result. For what price does the firm sell its output?
Labor Market
The supply and demand dynamics of labor forces, where employers seek to hire workers and workers seek employment.
Equilibrium
The state in a market where supply equals demand, leading to stable prices.
- Investigate the point of stability in workforce selection with a focus on profit enhancement.
Verified Answer
MT
Morgen TyndallMay 23, 2024
Final Answer :
Since the labor market always is in equilibrium, W = P X MPL. For Rob, W = $30 and MPL = 4, so P = $7.50.
Learning Objectives
- Investigate the point of stability in workforce selection with a focus on profit enhancement.