Let MP = Marginal Product of Labor, P = Output

question 137

Multiple Choice

Let MP = marginal product of labor, P = output price, and W = wage, then the equation that represents a situation where a competitive firm should lay off some workers to maximize profits is

• A)P × MP = W.
• B)P × MP > W.
• C)P × MP < W.
• D)MP × W = P.

Understand the process of reducing HR surplus through various strategic approaches.

Identify external factors that affect HR forecasting.

Acknowledge critical skills necessary for effective HR planning.

Comprehend the significance of firm-specific human capital.

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