A perfectly competitive firm has a MPL = 22-L. If P = 5 and w = $10/hr:
(a) What is the optimal quantity of labor demanded?
(b) Given these circumstances, how can the firm and the employee avoid outsourcing?
(c) How does the "slacker" or "lazy" worker compound the other workers problems? This answer relates to the nature of perfect competition.
(d) given you answer to c why should an someone who has already gone to college invest in another worker's education?
Solution Preview
A perfectly competitive firm has a MPL = 22-L. If P = 5 and w = $10/hr:
(a) What is the optimal quantity of labor demanded?
The optimal level is reached with the MRP of labor is equal to the wage. The MRP is equal to the MPL x P. Thus our equation is:
(22-L)P = 10
Using 5 for P and solving for L:
110 - 5L = 10
100 = 5L
L = 20
Thus the optimal level of employees is 20.
Overseas, the wage tends to be lower. ...
Solution Summary
Optimal level of employees, outsourcing, education, and lazy workers
... This also makes it cheaper for the business that is outsourcing because they do ... This is because education is in high demand and education is getting cut back ...
... international competitive position in the information technology outsourcing business, Brazil ...Education is needed to improve English skills, global experience ...
... These people work at BPO's and the outsourcing of information technology function provides these highly education person with opportunities to earn attractive ...
... Can you relate to any of these functions for obtaining education? ... Large corporations are presently outsourcing a great deal of their work, and are employing ...
... blaming herself for her husband's cancer due to an outsource saying how ... with substantial compassion and empathy and support” (Laureate Education, Inc., 2006 ...
... Laureate Education, Inc., 2007) stated that more and more people are working for BPO companies and becoming more and more westernized every day. Outsourcing is ...
... Lieberman emphasized that the key players in offshore outsourcing are: 1. India: With a ... one fifth of the total world population, a strong education system, and ...
... Jaiswal (Laureate Education, Inc., 2007), an assistant manager in BPO's consumer ... Hence, outsourcing gives American companies continuous worries and they are ...
