why would a firm be motivated to hire more workers than are found in stage 1 of the production function?

Question

Social Studies

Theodore Mcdaniel

1 February, 00:10

why would a firm be motivated to hire more workers than are found in stage 1 of the production function?

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Ezekiel Moon · Answer 1

A firm would be motivated to employ more workers if it willing to expand its production.

Explanation:

The levels and stages of productions are not pre believed brackets that the company exists in but a mere characterization.

All companies would usually start at the stage 1 and then move their operations further up.

This movement of the operation by the company also requires more capital from their side and eventually more labor as the old amount will not be able to cope with the increased amount of work.

This is when the company will decide to hire new workers and to expand the base of the company.