Assume that a restaurant is hiring labor in an amount such that the mrc of the last worker is $16 and her mrp is $12. based on this information, we can say that:______.
Profits will be increased by hiring fewer workers. Marginal resource cost is the additional cost incurred from adding an extra unit of labor.
The increased expense incurred by using one more unit of the input is known as the marginal resource cost. It is calculated by dividing the variation in the total cost by the variation in the number of inputs. We suppose that the company is a modest employer in the market in a resource or input sector that is competitive.
To calculate Marginal Revenue Product (MRP) = Marginal Resource Cost (MRC) (MRP) MRC is the last recruited unit's addition to the overall cost. The price is MR (assumes a perfectly competitive output market).
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