Profitability Condition for Employment
For a firm to profitably employ a worker, the no-shirking wage () required to motivate them must be less than the value of the output () they produce. If this condition, , is not met, the firm will not make a profit from that employee and will therefore choose not to hire them.
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.6 The firm and its employees - The Economy 2.0 Microeconomics @ CORE Econ
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