According to the rule for optimal input usage, a firm should hire a person as long as his or her marginal revenue product is greater than his or her marginal cost to the company. It is well known that many companies have management training programs in which new trainees are paid relatively high starting salaries and are not expected to make substantial contributions to the company until after the program is over (programs may run between 6 to 18 months). In offering such training programs, is a company violating the optimality rule? Explain
economics - SraJMcGin, Saturday, September 10, 2011 at 10:21am
You might try some of the following links for information:
Any good company would train a new employee that they expect to keep.
economics - shweta bohora, Sunday, September 15, 2013 at 11:39pm
where the hell is the solution?