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Genrish500 [490]
3 years ago
14

How might firms BEST use marginal analysis to determine price and output when there are additional costs related to hiring a new

worker?
Social Studies
2 answers:
pantera1 [17]3 years ago
7 0

Answer:

Firms might maximize revenue by raising price or output

Explanation:

Through marginal analysis it is possible to compare the costs incurred with the benefits obtained from some financial strategies, which enables the company to better analyze its strategy in an attempt to maximize its profitability. Through marginal analysis they can maximize revenue by increasing price or output when price and output need to be determined when there are additional costs related to hiring a new worker.

lakkis [162]3 years ago
6 0
I believe the answer is: Firms might maximize revenue by raising price or output

When a firm higher an additional worker, the total labor expense that they have to spend would rise. 
But this situation wouldn't reflect negatively on their income report if that additional worker could contribute to more output that has more value than the cost of his/her employment.
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