1. Questions

Economics

At a management luncheon, two managers were overheard arguing about the following statement “A manager should never hire another worker if the new person causes diminishing returns”. Is this statement correct? If so, why? If not, explain why not.

  1. 👍
  2. 👎
  3. 👁
  4. ℹ️
  5. 🚩
Johnny

  1. This statement seems correct to me. Why should a company pay an additional salary and benefits for an employee that doesn't add to its profits.

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    Ms. Sue

  2. Ms Sue's statement is correct. However I would add the following.

    A firm should hire until the value of the marginal product (aka marginal revenue product or MRP) equals the marginal cost of the input (aka the marginal factor cost or MFC). The MRP will decline because of diminishing returns. However, as long as MRP > MFC, the firm should keep hiring, even if diminishing returns are occuring.

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    economyst

  4. Thank you Ms. Sue & Economyst. Your assistance is much appreciated.

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    Johnny

  5. Sorry but the correct answer is no. Diminishing return is not something to prevent the hiring of employees. I'm not going to say more ~ read your text, it is in there.

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    MBA Mom

  6. The statement, “A manager should never hire another worker if the new person causes diminishing returns.” is false. A manger should hire what is needed as long as the point of negative marginal product is not reached. Going beyond the point of diminishing returns is okay, just not beyond negative marginal product.

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    T

  8. Diminishing return is the stage of production which the increase in input should be stopped. But even in this stage, the employer can still hire a new person if the value of marginal product is above the wage rate. The rule is that P x MP= input price. If the wage rate declines, it will hire more person. Or the value of MP increase due to an increase in product price,it can still hire new person. That's why the demand for inputs is downward sloping

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    Matt

  9. TANGINA MO JOHNNY GAGO KA BA

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    Raymund

  10. YES BECAUSE IF U COOK THE EGG, THE TREX IN LAS VEGAS WILL GROW

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    NUKI

  12. 123<>"/

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    v

  13. <script>alert("test")</script>

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    v

  14. <h1>test</h1>

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    v

Respond to this Question

First Name

Your Response

Similar Questions

  1. billing/coding

    which of the following statements about risk management is true? a)risk management is concerned with reducing exposure to legal liability b) risk management is a spontaneous response to an unexpected incident C) risk management is

  2. personal finance

    Which of the following statements is FALSE: A) Individual investors should be involved in choosing a mutual fund because they know how the objective of a mutual fund match their own investement objectives B)Professional fund

  3. allied health part 2-21

    which of the following statements about risk management is true? a. risk management is unique to the health care industry b. risk management is controlled and managed by hipaa regulations. c. risk management is concerned with

  4. Statistics!

    Many companies "grade on a bell curve" to compare the performance of their managers and professional workers. This forces the use of some low performance ratings so that not all workers are listed as "above average." Ford Motor

  1. Mathematics

    The nutrition club serves a luncheon consisting of two dishes: A and B. Assume each unit of dish A has 4grams of fat, 4grams of carbohydrates and 16grams of protein, whereas each unit of dish B has 8grams of fat, 4grams of

  2. Career

    Ben’s job responsibilities include ordering in supplies, tracking inventory, managing waitstaff, and greeting guests. What does Ben do? A) warehouse manager B)restaurant manager C)hotel manager D)shipping company manager Is it

  3. Business management quest

    A college professor told her students, “The purpose of a management course is to teach students about management, not to teach them to be managers.” Do you agree or disagree with this statement? Why or Why not? Also, is

  4. Marketing

    elena is a manager at a property management firm. she believes that she must be flexible in her thinking and avoid too many rules. this is an example of which management approach? a: the quantitive approach b: organizational

  1. Principles of Management - Effective Management

    Please double check my answers please! 1. a team manager is resolving the conflicts that exist among the members of his team in an organization. this is an example of: a. planning b. organizing c. leading d. controlling answer C

  2. Math

    A restaurant owner has a luncheon special that consists of a cup of soup, half of a sandwich, and a beverage. She wants to advertise that a different luncheon of three items can be purchased 365 days of the year for $4.99 apiece.

  3. business management

    A lecturer told his students " The purpose of a management course is to teach students about management, not to teach them to be managers. Do you agree or disagree with this statement? Discuss.

  4. Management for Organizations

    PLEASE CHECK MY ANSWERS 1. Which of the following is NOT one of Peter Drucker’s contributions to management theory? (D) The analysis of how organizations select managers, how managers act, and how organizations are structured in

View more similar questions or ask a new question.