Asked by
Conner Seagraves
on Oct 12, 2024
Verified
An improvement in managerial efficiency in a Fortune 500 corporation increases the marginal revenue product of all people working for the corporation.Assuming that the wage of workers who are hired in a competitive labor market remains constant,the company will
A) fire some workers.
B) hire some workers.
C) neither increase nor decrease the number of workers employed.
D) shut down unless it can lower wages.
Marginal Revenue Product
The extra income produced by using an additional unit of a production element, like labor or capital.
Managerial Efficiency
The effectiveness with which managers utilize resources at their disposal to achieve organizational goals.
Fortune 500
A yearly listing produced and released by Fortune magazine, ranking the top 500 largest corporations in the U.S. based on their total annual revenue.
- Illustrate the repercussions of technological development on the marginal contribution of labor and the consequent variations in employment status.
- Analyze the effects of managerial efficiency improvements on labor demand and marginal revenue product.
Verified Answer
CS
Learning Objectives
- Illustrate the repercussions of technological development on the marginal contribution of labor and the consequent variations in employment status.
- Analyze the effects of managerial efficiency improvements on labor demand and marginal revenue product.