Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 18 - Part VI - The Markets for the Factors of Production - Questions for Review - Page 391: 1

Answer

The company's production function is related to its marginal product of labor in such a way that the marginal product of labor decreases as the number of employees increases. The value of the marginal product is obtained by multiplying the total cost of labour with the selling size. If the amount of the gross output of labor is equal to the wage, a business ends from further cycle of employment.

Work Step by Step

See above.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.