Discussion:
One question fromthe list will be on the actual exam. This question is worth20 points. Since you do notknowwhichquestion will be on the actual exam, you MUST type up the answers for both questions inadvance. Makes sureyou typeyour name on the each essayanswer.
Here is myadvice: Do NOT playa Russian roulette with yourcourse grade; make sure you takeyour timetowrite uptheanswers in details. To answerproperly, thesequestions require minimumone-third to a halfpage, single-space,font size 12.
Below is thelist of the questions. Thefirst question is myown,and the second question comesfromyourtextbook.
(1) How does capital investment affect the marginal physical product of labor? Does more collegeeducation have the samekind of effect? Which is a better investment?
(2) Make sureyou reallyexplain your answer. Ifyou wish,you can also include an examplewhileexplaining your answer in detail.
According to the rule foroptimal input usage, a firmshould hire a person as long as hermarginal revenueproduct is greater than her marginal cost to the company. It is well known that manycompanies havemanagement trainingprograms in which new trainees are paid relativelyhigh starting salaries and arenotexpected to make substantialcontributions to the companyuntil after the programis over (programsmayrunbetween 6 to 18 months). In offeringsuch training programs, isa companyviolating the optimalityrule?Explain.