The profits turn into payments to labor. Give an example that illustrates this.
The profits turn into payments to labor. Give an example that illustrates this.
Homework Answers
For any production process, the firm needs to have labor and the cost of labor is wages that the firm must pay to labor. The firm will not pay the wages out of pocket, therefore, they should earn the profit in order to pay the wages. The firm must be able to sell the product made with the help of labor and they should earn the profit by selling product. Once the firm earns the profit some percentage of it will be given to the labors as a wage. So, we can say that profits turn into payments to labor.
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The profits turn into payments to labor. Give an example that
illustrates this.
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