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Is it wise for a firm to employ a worker at 20 per hour when another worker does the same job for 10 per hour?
It may not be wise for a firm to employ a worker at $20 per hour when another worker can perform the same job for $10 per hour, as this creates unnecessary labor costs. However, factors such as the experience, qualifications, or productivity of the higher-paid worker may justify the wage difference. Additionally, if the $20 worker brings unique skills or contributes to higher overall efficiency, the investment might be worthwhile. Ultimately, the firm's decision should consider both cost-effectiveness and the value each worker brings to the organization.
How do companies determine wages for employees?
By the equilibrium between supply and demand for workers
Is it wise for firm to employ it worker at 20 per hour when another worker does the same job for 10 per hour?
A company might do this if they value a particular employee a lot. For example, the particular employee might have a lot of experience in the job, be more productive, or commit less errors.
Is it wise for a firm to employ a worker at 20 per hour when another worker does the sam job for 10 per hour?
Only if there is some special reason for it: the lower paid one might be an apprentice; the higher paid one may have special skills. There can be many more reasons for it. Perhaps you have read the Bible story about such a matter.
Is it wise for firm to employ a worker at 20 per hour when another worker does the same job for 10 per hour?
There may be many reasons for it - some good, some bad and some in between: One of them is the owner's relative; The higher paid worker is more skilled (or faster); The two workers may be in different locations - with different employment rates and costs of living (that is the whole point of multinationals sourcing overseas!). The firm may have to justify its decision to anti-discriminatory agencies.
When a firm is able to put idle equipment to use by hiring another worker?
Variable costs will rise.
A firm will only employ additional workers to which point?
to the point where MRP=MC
When a firm hires a worker for one hour the marginal benefit to that firm equals the?
The marginal benefit will be the value added by that one hour of work. Say the worker is an economist and produces $50 worth of service work in that hour for the firm. The marginal benefit would be $50. If the worker is in production and spins $10 worth of thread into fabric the firm can sell for $100, then the value added (and the marginal benefit) is $90.
How much does it cost to start your own law firm?
The price it costs to start a law firm varies. The price can range from 20,000 dollars up to 100,000 dollars.
What is the additional revenue that accrues to a firm when an additional worker is hired?
marginal revenue product
When a firm can acquire another firm?
anytime -Of course there is no limit for a comapny to buy another one
Why is demand for labor curve downward sloping?
I believe in economics we assume that firms are rational and because of this a rational firm would not employ additional labor if it caused a decline in the total output of the firm.
