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UIlr tTe Tmeasurements of GDP because there is no way of measuri m the them. included in GDP if legal and excluded from GDP if illegal. estimated and included in measurements of GDP. Save Question 13 (1 point) One reason that firms hire labour at the point where w MPNis if w s MPN. the cost (w) of hiring additional workers exceeds the benefits (MPNI of hiring them, so they should hire fewer workers. if W MPN, the cost (w) of hiring additional workers is less than the benefts (MPN) of hiring them. so they should hire more workers. if w MPN, the cost (w) of hiring additional workers exceeds the benefhts (MPN of hiring them. so they should hire fewer workers onse esponse Save Question 14 (1 point) Dutch disease may be evident in Canada because n 20 Saved

Explanation / Answer

Ans. Answer to this question is very easy , Let's start answering it :

The correct option would be Part d) of w > MNP , the cost of hiring additional workers exceeds the benefits ( MPN ) of hiring them so they should hire fewer workers.

We know that w = Cost of Hiring additional worker and MPN = Benefits we get because of hiring.

Now , Firms would only hire Workers when w = MPN ie when the Cost they are incurring is equal to the Benefits. Because when the Cost ( w ) would become higher than the MPN ( Benefit ) , ie w > MPN there would be no point in hiring the workers because we are paying more cost and Benefit we are getting is less.

Thus firm would be Hiring Less Workers. Because Cost is outweighing the Benefits.

I hope you understood the answer. Do ask in case of doubts.

A Thumsup would be Highly Appreciated !!

Best of Luck !! Keep Chegging !!

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