According to the rule for optimal input usage, a firm should hire a person as long as
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According to the rule for optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than 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.
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Managerial Economics Economic Tools For Today's Decision Makers
ISBN: 9780131860155
7th Global Edition
Authors: Paul G Keat, Philip K Y Young
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