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lapo4ka [179]
3 years ago
13

Hunter works in the human resource department of a well-known and highly respected maker of athletic equipment. He suggests that

the company expand its recruiting by placing job advertisements on popular websites for job seekers. However, his supervisor says this has become a poor use of the company's recruiting dollars. Which is the most likely reason for the supervisor's objection?
Business
1 answer:
Aliun [14]3 years ago
8 0

Answer:

The company will get very few applications, because job hunters read the ads slowly.

Explanation:

This is the complete question

Hunter works in the human resource department of a well-known and highly respected maker of athletic equipment. He suggests that the company expand its recruiting by placing job advertisements on popular websites for job seekers. However, his supervisor says this has become a poor use of the company's recruiting dollars. Which is the most likely reason for the supervisor's objection?

Finding a match between job seekers and job vacancies is inefficient on these sites.

These types websites are too difficult for most job hunters to use.

The company will get very few applications, because job hunters read the ads slowly.

The company will be flooded with applications from individuals who are barely qualified.

.Job hunters feel thwt ads are incredibly time-consuming. Some of the worst job applications are found on government and academic websites, where it can take six to eight hours to complete one application. Even the quick-and-easy ones can easily suck up an hour of your time. In reality it is really true. His supervisor might diaagree for such a reason.

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Answer:

a) Yes, the firm is minimizing the cost of current production. This is because MRPL / w = MRPC / r = 0.20.

b) The long run adjustments that the firm would likely make in response to the wage increase is to use more labor and less capital until MRPL / w = MRPC / r, which is the condition for the cost minimization of a firm.

Explanation:

a) Given the information provided, is the firm minimizing the cost of current production? Explain why or why not.

The condition for the cost minimization of a firm is as follows:

MRPL / w = MRPC / r ……………………………. (1)

Where:

MRPL = Labor's marginal product = 40

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MRPC = Capital's marginal product = 30

r = Cost of capital = 150

Therefore, we have:

MRPL / w = 40 / 200 = 0.20

MRPC / r = 30 / 150 = 0.20

Since MRPL / w = MRPC / r = 0.20, this implies that these conditions are consistent with equation (1). Therefore, the firm is minimizing the cost of current production.

b) If the daily wages were to increase, explain the long run adjustments that the firm would likely make in response to the wage increase.

If the daily wages were to increase, the MRPL / w in equation (1) in part a above will fall and we will have:

MRPL / w < MRPC / r …………………… (2)

Since equation (2) is no longer consistent with equation (1), the firm is NOT minimizing the cost of current production.

Therefore, the long run adjustments that the firm would likely make in response to the wage increase is to use more labor and less capital until MRPL / w = MRPC / r, which is the condition for the cost minimization of a firm.

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