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In 2009 General Motors (GM) announced that It would reduce employment by 21,000 workers. What does this decision reveal about how GM viewed its marginal
In 2009 General Motors (GM) announced that It would reduce employment by 21,000 workers. What does this decision reveal about how GM viewed its marginal revenue product (MRP) and marginal factor cost (MEC)? a. This decision indicates that for those 21,000 workers the MFC was greater than the MRP. O the MFC was less than the MRP O the MFC was negative. the MRP was negative. b. GM didn't reduce employment by more than 21,000 workers because O it wanted to set the labour level where MFC equaled MRP to maximize profit. It wanted to set the labour level where MFC equaled MRP to maximize revenue. O this was what the board voted to do. that lowered the cost enough to make some profit
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