General Business BUS206 Lecture Notes - Lecture 7: Factors Of Production, Level Set, Marginal Revenue Productivity Theory Of Wages
22 Sep 2020
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Document Summary
External competitiveness refers to the pay relationships among organizations the organization"s pay relative to its competitors. Setting a pay level that is above, below, or equal to that of competitors. Determining the mix of pay forms relative to those of competitors. Pay rates reflect all costs associated with employment. The market rate is where the lines for labor demand and labor supply cross. Supply and demand for business school graduates in the short run. Analysis of labor demand indicates how many employees will be hired by an employer. In the short run, an employer cannot change any factor of production except human resources. An employer"s level of production can change only if it changes the level of human resources. They possess accurate information about all job openings. Marginal product of labor is the additional output associated with employment of one additional person, with other production factors held constant.
