An employer hiring in a competitive labor market should hire additional labor as long as Multiple Choice the wage rate is less t

Question

gogolik [260]

1 year ago

9

An employer hiring in a competitive labor market should hire additional labor as long as Multiple Choice the wage rate is less t

han MP. MC exceeds MR. average product exceeds MP. the MRP exceeds the wage rate.

Business

1 answer:

KATRIN_1 [288] · Answer 1 · 2024-03-03T17:03:27+03:00

The correct answer is- the MRP exceeds the wage rate.

<h3>How does MRP influence wage rates?</h3>

Basic economic theory suggests that wages depend on a worker's marginal revenue product MRP. (this is basically the value that they add to the firm which employs them.)

MRP is determined by two factors: MPP – Marginal physical product – the productivity of a worker.

<h3>What factors increase wages?</h3><h3>Productivity:</h3>

Wage increase is sometimes associated with increase in productivity.

Workers may also be offered additional bonus, etc., if productivity increases beyond a certain level.

Learn more about MRP and wage here:

<h3>brainly.com/question/21252933</h3><h3 /><h3>#SPJ4</h3>