The Marginal Benefit of hiring workers for a firm is given by: MB 2.000 - 2L....

 

Transcribed Image Text:

The Marginal Benefit of hiring workers for a firm is given by: MB 2.000 - 2L. = The Marginal Cost to the firm of hiring workers is given by: MC 1,400+ L. L represents the number of workers.. a) Calculate the optimal amount of workers that the organization should hire. b) Draw a well labelled diagram of the solution. c) Explain briefly the slopes of the Marginal Benefit and Marginal Cost Curves. Why does it cost more to hire each additional worker? Why does the benefit of each additional worker decrease? The Marginal Benefit of hiring workers for a firm is given by: MB 2.000 - 2L. = The Marginal Cost to the firm of hiring workers is given by: MC 1,400+ L. L represents the number of workers.. a) Calculate the optimal amount of workers that the organization should hire. b) Draw a well labelled diagram of the solution. c) Explain briefly the slopes of the Marginal Benefit and Marginal Cost Curves. Why does it cost more to hire each additional worker? Why does the benefit of each additional worker decrease?

Answer rating: 100% (QA)

a To find the optimal amount of workers that the organization should hire we need to find the point where the marginal benefit MB equals the marginal cost MC So we set MB equal to MC and solve for L M... View the full answer