Only when the marginal revenue product is equal to the wage rate will the firm have hired the profit-maximizing amount of labor.This profit-maximizing condition is therefore MRPL=0
Only when the marginal revenue product is equal to the wage rate will the firm have hired the profit-maximizing amount of labor. This profit-maximizing condition is therefore MRPL =
The factor market profit-maximizing condition that the marginal revenue product be equal to the wage rate (MRPL=(MP)MR=o)is analogical to(偻似于)the output market condition that marginal revenue be equal to marginal cost. MR=0/MPL
The factor market profit-maximizing condition that the marginal revenue product be equal to the wage rate ( MRPL =(MPL) MR = ) is analogical to (类似于) the output market condition that marginal revenue be equal to marginal cost. MR = /MPL
The equation shows that both the hiring and output choices of the firm follow the same rule:inputs or output are chosen so that marginal revenue(from the sale of output)is equal to marginal cost(from the purchase of inputs).This principle holds (in both competitive and noncompetitive markets
The equation shows that both the hiring and output choices of the firm follow the same rule: inputs or output are chosen so that marginal revenue (from the sale of output) is equal to marginal cost (from the purchase of inputs).This principle holds (适用) in both competitive and noncompetitive markets
Price of Labor 0￥ SL MRPL=DL L* Quantity of Labor Hiring by a Firm in the Labor Market (with Fixed Capital)
Hiring by a Firm in the Labor Market (with Fixed Capital)
In a competitive labor market,a firm faces a perfectly elastic supply of labor SL and can hire as many workers as it wants at a wage rate w*. The firm's demand for labor D is given by its marginal revenue product of labor MRPL.The profit-maximizing firm will hire L* units of labor at the point where the marginal revenue product of labor is equal to the wage rate
In a competitive labor market, a firm faces a perfectly elastic supply of labor SL and can hire as many workers as it wants at a wage rate w*. The firm's demand for labor DL is given by its marginal revenue product of labor MRPL . The profit-maximizing firm will hire L* units of labor at the point where the marginal revenue product of labor is equal to the wage rate