Grantham ECN201 2022 November Week 7 Discussion Latest

Grantham ECN201 2022 November Week 7 Discussion Latest

Question # 00835212 Posted By: wildcraft Updated on: 12/05/2022 03:22 AM Due on: 12/05/2022
Subject Economics Topic General Economics Tutorials:
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ECN201 Microeconomics

Week 7 Discussion

Profit-maximizing firms will hire additional units of a resource up to the point at which the marginal revenue product (MRP) of the resource equals its price.  With multiple inputs, firms will expand their use of each until the marginal product divided by the price (MP/P) is equal across all inputs

What is the link between marginal revenue product and wages?  Due to there being discrepancies between the productivity and resource offerings (i.e., education, skills, experience) in labor markets, is it justified for one employee with a higher marginal revenue product to earn a higher wage than an employee with a lower marginal revenue product?  Does this notion of marginal revenue product and wages conflict with minimum wage laws?

Review the mechanics of demand and supply.  How does marginality work in economics?

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    Tutorial # 00830659 Posted By: wildcraft Posted on: 12/05/2022 03:23 AM
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