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answer assignment #1 in 4 paragraphs answer assignment #2 in 2 paragraphs
Date Posted: 14/04/2021
Category: Business
Due Date: 15/04/2021
Instruction
read and respond to each assignments below assignment #1 In theory - firms are suppose to hire labor up the the point where the marginal revenue product equals the marginal factor cost. Explain what this means and do you find this to be true? When would this not be the case? Have you witnessed this not being the case in your own work experience? Bring in material from the chapter to support your answer. assignment #2 Marginal revenue product is the amount that an additional unit of a factor adds to a firm’s total revenue during a certain period. This is done by increasing a company’s output which would in return increase total revenue for the company. For example, in the construction industry the company has account for additional factors to get a job completed, one of those factors is equipment cost and how much is needed to get the job done. 2 pieces of equipment will get the job done faster than 1. However, when adding more equipment to a project the company also must add more laborers to operate that equipment. For a project to be successful the labor burden must match production, the company never wants to go over production in labor because then that job will not be profitable. I have seen this happen in the construction industry numerous times; jobs start off with too much labor but do not realize this until towards the end of the project.
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