If labor costs rise you may consider substituting capital

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As a manager, how would you decide how many workers to hire? What factors might play a role in your decision?

  • With retention becoming increasingly important due to the cost of hiring and training, how would you, as a manager, address retention issues? Include a summary of how this would impact your overall cost of production.

  • If labor costs rise you may consider substituting capital input for labor input. What factors do you need to consider when making this substitution? If capital cannot be substituted for labor, what other options do you have to address the issue of rising labor costs?

 

 

Reference no: EM13476224

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