Essay Writing Service

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

Using marginal revenue product theory, explain why countries such as Greece and the UK have different minimum wage rates for different age groups. [3 marks]

Marginal revenue product is the additional revenue a firm gains by having a unit of labour produce an addition unit of the good being sold. The UK and Greece will have different minimum wage rates for the same age groups because of the productivity of their labour with respect MRP. It can be concluded that the UK has a higher minimum wage for all age groups than Greece and this would suggest that Greece workforce as a whole is less productive, meaning that the marginal revenue product of a Greece worker for is lower than the marginal revenue product of a UK worker for the same job. Hence, if firms pay workers according to their marginal revenue product, UK firms are required to pay more per worker as MRP is higher here, leading to an overall higher minimum wage.

Most Used Categories

EssayHub’s Community of Professional Tutors & Editors
Tutoring Service, EssayHub
Professional Essay Writers for Hire
Essay Writing Service, EssayPro
Professional Custom
Professional Custom Essay Writing Services
In need of qualified essay help online or professional assistance with your research paper?
Browsing the web for a reliable custom writing service to give you a hand with college assignment?
Out of time and require quick and moreover effective support with your term paper or dissertation?