Enterprise personnel - this is a collection of workers of various professional and qualification groups employed at the enterprise and included in its payroll .

IN payroll All employees hired for work related to both the main and non-core activities are included.

The composition and quantitative relationships of individual categories and groups of employees of the enterprise characterize personnel structure.

The concept " enterprise labor resources» characterizes its potential workforce.

The concept " staff» - the entire workforce of permanent and temporary, skilled and unskilled workers.

Under the concept "personnel" refers to the main (full-time, permanent), usually qualified, composition of employees of the enterprise.

In Group employees The following categories of workers are distinguished:

ü managers - persons authorized to accept management decisions and organize their implementation. They are divided into linear, heading relatively isolated economic systems, and functional, leading functional departments or services;

ü specialists – workers engaged in engineering, technical, economic, accounting, legal and other similar activities;

ü directly employees – workers involved in the preparation and execution of documentation, accounting and control, economic services and office work (agents, cashiers, controllers, clerks, accountants, draftsmen, etc.).

Tariff and qualification characteristics serve as a basis for development job descriptions , as well as differentiation in the level of remuneration of workers based on the Unified tariff schedule public sector workers. Tariff and qualification characteristics for each position consist of three sections:

ü « Job responsibilities»

ü "Must know"

ü "Requirements for qualification in the ranks of the payment".

The professional and qualification structure of the enterprise’s employees is reflected in staffing table .

ü Staffing table enterprises and organizations of the public sector - this is a document approved annually by the head of the enterprise and representing a list of employee positions grouped by departments and services, indicating the rank (category) of work and official salary.

ü HR management (personnel) is the part of management associated with the labor resources of the enterprise.

ü HR management – is the development and implementation of personnel policy.

ü Under staff turnover is understood as a percentage ratio of the number of people dismissed by at will, for absenteeism and other violations labor discipline workers for a certain period of time to their average number for the same period.

2. Planning the number of employees of the enterprise.
Working time budget calculation

Number of people- this is an established number of employees of a certain professional qualification required to perform specific production, management functions or volumes of work.

Headcount - this is an indicator of the number of employees on the payroll as of a certain date or date. It takes into account the number of all employees of the enterprise hired for permanent, seasonal and temporary work in accordance with concluded employment agreements (contracts).

Turnout characterizes the number of payroll employees who reported to work on a given day, including those on business trips. This is the required number of workers to complete the production shift task for production.

Average headcount– the number of employees on average for a certain period (month, quarter, since the beginning of the year, for the year). The average number of employees per month is determined by summing the number of employees on the payroll for each calendar day of the month, including holidays and weekends, and dividing the resulting amount by the number of calendar days of the month.

Determination of personnel requirements at the enterprise is carried out separately by groups industrial production And non-industrial personnel.

The main methods for calculating quantitative personnel requirements are calculations:

ü by labor intensity production program;

ü according to production standards;

ü according to service standards;

ü by workplace.

Standard number of workers (main piece workers) (Nch) by labor intensity of the production program determined by the formula

ü N h = (T pl / F n) K v.n,

ü T pl – planned labor intensity of the production program, standard hours;

ü F n – standard balance of working time of one worker per year, h;

ü K v.n – coefficient of fulfillment of time standards by workers.

The planned labor intensity of the production program is determined according to the planned standard labor costs per unit of production multiplied by the planned production output.

ü Number of workers according to production standards determined by the formula

ü N h = (OP pl / N vyr) / K v.n,

ü OPpl – planned volume of products (work performed) in established units of measurement for a certain period of time;

ü N vyr – planned production rate in the same units of measurement and for the same period of time

Planning the number of main workers in hardware processes and auxiliary workers performing work for which there are available service standards , comes down to determining the total number of service facilities, taking into account work shifts:

N h = K o / N o x C x K sp,

K about – number of units of installed equipment;

N o – service rate (number of equipment units serviced by one worker);

C – number of shifts;

Ksp is the coefficient for converting the number of workers present to the payroll.

In continuous production, K sp is defined as the ratio of the nominal time fund to the useful (effective), and in continuous production - as the ratio of the calendar time fund to the useful (effective).

By workplace The number of support workers is usually determined, for which neither the scope of work nor service standards can be established:

N h = M x C x K sp,

M – number of jobs.

The number of cleaners can be determined by the area of ​​the premises assigned to them, wardrobe attendants - by the number of people served, etc.

Labor Resource Fund in man-days or man-hours (F rt) can be determined by multiplying average number workers (H sp) for the average duration of the working period in days or hours (T rv):

F rt = Ch sp x T rv.

Working hours(Trv) in the planning period can be determined by the following formula:

Trv = (Tk – Tv – Tprz – To – Tb – Tu – Tg – Tpr) x Psm –

(Tkm + Tp + Ts),

where Tk is the number of calendar days in a year;

TV – number of days off per year;

Tprz – quantity holidays per year;

That is the duration of regular and additional vacations,

TB – absence from work due to illness and childbirth, days;

Tu – duration of study holidays, days;

Tg – time to carry out state and public

duties, days;

Tpr – other absences permitted by law, days;

Psm – duration work shift, h;

Tkm – loss of working time due to reduction

duration of the working day for nursing mothers, hours;

Тп – loss of working time due to reduction

length of working day for teenagers, hours;

Тс – loss of working time due to reduced work hours

in the afternoon on pre-holiday days, h.

• 3. Labor productivity.
  Production and labor intensity

Labor productivity characterizes the efficiency, effectiveness of labor costs and is determined by the amount of products produced per unit of working time, or labor costs per unit of products produced or work performed

Annual labor productivity ( annual output per worker) is the main planning and accounting indicator for enterprises.

At enterprises, labor productivity is defined as the cost efficiency of living labor only and is calculated through indicators production And labor intensity products, between which there is an inversely proportional relationship.

Output(B) is the amount of products produced per unit of working time or per one average employee or a worker for a certain period (hour, shift, month, quarter, year).

It is calculated as the ratio of the volume of produced products (OP) to the working time spent on the production of these products (T) or to the average number of employees or workers (H):

B = OP / T or B = OP / H.

Hourly (H) and daily (D) output per worker is determined similarly:

In h = OP month / T hour; In days = OP month / T days

OP month – production volume for a month (quarter, year);

T hour, T day – the number of man-hours, man-days (working time) worked by all workers per month (quarter, year).

When calculating hourly output, man-hours worked do not include intra-shift downtime, so it most accurately characterizes the level of productivity of human labor.

When calculating daily output, all-day downtime and absenteeism are not included in man-days worked.

Labor intensity(Tr) represents the cost of living labor to produce a unit of output.

It establishes a direct relationship between production volume and labor costs and is determined by the formula:

Tr = T / OP,

T – time spent on the production of all products, standard-hours, man-hours;

OP – volume of products produced in physical terms.

Technological complexity(T tech) reflects the labor costs of the main production workers - piece workers (T sd) and temporary workers (T pov):

T tech = T sd + T rev.

Labor intensity of production maintenance(T obsl) is the totality of the costs of auxiliary work shops of the main production (T main) and all workers of auxiliary shops and services engaged in servicing production (T vsp):

T obs = T main + T aux.

Production labor intensity(T pr) includes the labor costs of all workers, both main and auxiliary:

T pr = T tech + T obs.

Labor intensity of production management(T y) represents the costs of employees (managers, specialists and actual employees) employed both in the main and auxiliary shops (T sl. pr) and in general plant services of the enterprise (T sl. manager):

T y = T next + T next head.

Included full labor intensity (T full) reflects the labor costs of all categories of industrial production personnel of the enterprise:

T full = T tech + T obs + T y.

Depending on the nature and purpose of labor costs, each of the indicated labor intensity indicators can be:

ü design,

ü promising,

ü normative,

ü planned,

ü actual.

Labor productivity planning. Marginal productivity of labor

An increase in labor productivity is manifested in the fact that the share of living labor in manufactured products decreases, and the share of past labor increases, while the absolute value of living and embodied labor costs per unit of output decreases

Labor productivity planning for the enterprise as a whole is carried out according to the main technical and economic factors in the following order:

Ø the savings in the number of employees from the development and implementation of each measure to increase labor productivity (E i) is determined;

Ø the total savings in the number of employees (E h) is calculated under the influence of all technical and economic factors and measures (E h = ΣE i);

Ø the increase in labor productivity (ΔPT) is calculated at the enterprise (in the workshop, on the site), achieved under the influence of all factors and measures according to the formula

ΔPT = E h x 100 / (H r – E h),

Ch r – the number of industrial production personnel required to fulfill the annual production volume while maintaining the output (productivity) of the base (previous) period

Under growth factors labor productivity, the reasons that determine changes in its level are understood.

It is customary to distinguish the following groups of factors:

Ø increasing the technical level of production;

Ø improvement of production and labor organization;

Ø changes in production volume and structural changes in production;

Ø change in external, natural conditions;

Ø other factors.

Ø Under growth reserves labor productivity at the enterprise implies unused yet real savings opportunities labor resources.

Ø B market conditions management concept is becoming increasingly widespread marginal productivity of labor, according to which an additional increase in the number of workers leads to an increasingly smaller increase in the marginal product. At the same time, under marginal product of labor refers to the amount of additional products that an enterprise will receive by hiring one additional employee.

Ø By multiplying the marginal product by its price, we obtain the monetary expression of the marginal product, or the marginal (or additional) income from hiring the last employee.

Ø If the marginal product of labor is less than the marginal cost of labor, then profits begin to decrease with the last worker hired. Therefore, it is possible to increase profits only by reducing the number of employees.

Ø Thus, profit maximization is possible only at a level of employment in the enterprise when marginal revenue, obtained as a result of the work of the latter accepted employee, is equal marginal cost to pay for his labor.

REMUNERATION AT THE ENTERPRISE

Marginal factor productivity

Marginal factor productivity-- contribution of production factor a, equal to the change in income from production product when adding or subtracting a unit of this factor, if the quantities of other factors remain unchanged. Author of the theory of marginal productivity J.B. Clark made the assumption that the distribution of income between factors (more precisely, between their owners) in accordance with the marginal productivity of factors meets the requirements of social justice.

Returns to scale. Graphic solution

When choosing technically effective method production, an increase in output is possible due to a proportional increase in the use of all production resources. This is a change in the scale of production.

Let the initial relationship between output and applied resources be described by the production function:

If we increase the volume of resources used (scale of production) by k times, then the new volume of output will be:

As a result we get:

constant returns to scale, when output also increases k times (Q 1 =kQ 0); diminishing returns to scale, if output increases by less than k times(Q 1< kQ 0);

to increasing returns to scale with an increase in output by more than k times (Q 1 > kQ 0).

Let us introduce another characteristic of the production function - homogeneity. A production function is called homogeneous if, with an increase in the quantity of all production resources by k times, output increases by k t times, so that

Q1=(kK, kL) = ktQ0(K, L) (4.5)

The t indicator characterizes the degree of homogeneity of the function. If equality (4.5) is not satisfied for a given production function, then such a production function is called heterogeneous.

The degree of homogeneity can be used to characterize the type of returns to scale if:

• * t = 1 - returns to scale are constant;
• * t > 1 - increasing returns to scale.

For a homogeneous production function, returns to scale can be represented graphically. The return indicator is the distance along a ray drawn from the origin between isoquants representing output volumes that are multiples of Q - Q, 2Q, 3Q, etc. (Fig. 4.3). In the case of heterogeneity of the production function, estimating returns to scale and their graphical representation are associated with significant difficulties.

Constant returns to scale are observed in those industries where resources are homogeneous (in the technical sense) and their quantities can be changed proportionally. In such industries, an increase in output can be achieved by a multiple increase in the volume of use of all production resources. Diminishing returns are usually associated with limited ability to manage large-scale production. Concentration of management (on a constant technical basis) beyond a certain limit leads to a disruption in the coordination of resource-output flows.

In many cases, the nature of returns to scale changes when certain limits of output are reached. Up to certain limits, production growth is accompanied by constant and even increasing returns to scale, which then give way to decreasing ones.

Rays drawn from the origin in Fig. 4.3 is called growth lines. They characterize technically possible ways to expand production, that is, the transition from a lower to a higher isoquant.

Among possible growth lines, isoclines are of interest, along which the marginal rate of technical substitution of resources for any volume of output is constant.

Dynamics of long-term average costs

Stage I: positive economies of scale	An increase in output is accompanied by a decrease in LATC, which is explained by the effect of savings (for example, due to increased specialization of labor, the use of new technologies, efficient use of waste).
Stage II: constant returns to scale	When the volume changes, costs remain unchanged, that is, an increase in the amount of resources used by 10% caused an increase in production volumes by 10%.
Stage III: diseconomies of scale	An increase in production volume (for example, by 7%) causes an increase in LATC (by 10%). The cause of damage from scale may be technical factors (unjustified gigantic size of the enterprise), organizational reasons(growth and inflexibility of the administrative and management apparatus).

Market mechanism

Market mechanism- this is a mechanism for the relationship and interaction of the main elements of the market: demand, supply, price, competition and the basic economic laws of the market.

The market mechanism operates on the basis of economic laws: changes in demand, changes in supply, equilibrium price, competition, cost, utility and profit.

The main operating goals in the market are supply and demand; their interaction determines what and in what quantity to produce and at what price to sell.

Prices are the most important instrument of the market since they provide its participants with the necessary information, on the basis of which a decision is made to increase or decrease the production of a particular product. In accordance with this information, the flow of capital and labor flows from one industry to another.

6) Government regulation of the market represents active intervention government agencies into the structure of the functioning of the market, influencing the development of production in a socially necessary direction, as well as to solve emerging social problems. The need for this moment arises when individual markets are imperfect, which manifests itself in instability, partial accounting of costs and results obtained, and non-unique equilibrium. Another important reason government regulation market is the need to solve macroeconomic problems. These include:

Ensuring full employment of the working population;

Fighting inflation;

Integrating the principles of social justice and economic efficiency and others.

State regulation of the market has the following goals: Stabilization market relations, establishing their equilibrium or a shift aimed at their equilibrium or deviation.

Methods of state regulation by which the above goals are achieved:

By controlling production volumes and price levels - in this case, the state sets specific prices or introduces market quotas;

Through the use of state financial instruments - expressed in the introduction of taxes and subsidies for certain areas of activity;

By setting fixed prices.

Introduction of a tax on a specific area production activities causes an active growth in proposals, where the cost of the tax is paid into the state budget by sellers from the funds of buyers purchasing goods. The subsidy represents the reverse side of the tax, established as a certain percentage of the cost of the product or in an amount (calculated in rubles) per unit of product. Subsidies are most often received by manufacturers, although there is real opportunity receipt and to a private person. Fixed prices are set for agricultural products, exceeding the equilibrium price level. Thus, the methods allow the state to regulate prices in markets.

8) The ordinal theory of utility is based on the assumption that people, although they cannot give an exact quantitative expression of the utility of goods, can always rank goods according to their degree of utility. On this basis, it becomes possible to explain the consumer’s choice without resorting to calculating the absolute value of the utility of the good. The aggregate utility function is a map of indifference curves.
Indifference curve– the line on which all sets of goods are located that have the same utility for the consumer, that is, x1y1 is equal in utility to the set x2y2.
The indifference curve is arranged according to the degree of increase in utility: the higher, the greater the utility.
Map of indifference curves in graphic form represents the utility function for a given consumer.
The indifference curve map is constructed based on the following assumptions about consumer behavior:
1. Consumer preferences have been formed.
2. Consumer preferences are transitive: A is more than B, B is more than C, A is more than C.
3. The needs are not completely satisfied, that is, the consumer will always prefer a set with a large quantity of at least one product: y2x3 is greater than y2x2.
4. The goods included in the consumer basket are interchangeable.
5. A bundle of goods on the same indifference curve gives the same utility, and the consumer is indifferent which bundle to use. He is always ready to replace a certain amount of one good with a certain amount of another good.
Indifference curves allow us to identify consumer preferences. However, they do not take into account consumer constraints - the price of goods and income.

9) Marginal rate of substitution (M.R.S.) product of a product shows the amount of a product that a consumer is willing to sacrifice in order to purchase one additional unit of a product, while maintaining the overall level of satisfaction unchanged.

MRS = ΔQ 2 / ΔQ 1

Ordinalist theory: consumer equilibrium condition

The ordinalist theory of marginal utility is a later development of two economists V. Pareto and J. Hicks.

According to this direction, the theory of marginal utility:

1. Marginal utility is immeasurable.

2. The subject measures not the utility of individual goods, but the utility of sets of goods

3. The subject is able to measure only the order of preference for sets of goods

4. All sets of goods can be grouped by distributing them into sets based on the marginal utility of the goods included in these sets

5. Graphically, a set of options that have equal marginal utility is depicted as a set of indifference curves

6. The utility function is replaced by index functions

7. The theory of marginal utility appears in general as a model of indifference curves.

It is the second direction of the theory of marginal utility that forms the foundation of consumer behavior.

10) IN short term To increase production, a firm can change the volumes of only some resources, while others are fixed. This feature determines the difference between the production function and short-term costs. The short-term production function has the form: It provides information about the contribution of each unit of a variable factor to the growth of total output, allows us to determine what costs of a variable factor can achieve the maximum volume of output for a certain period of time, taking into account operation of the law of diminishing returns. The contribution of a variable factor to the production process is calculated in terms of the total, average and marginal product in physical units. The total physical product or total productivity of a variable factor is the total amount of products produced by all units of the variable factor, subject to the constant other factors. Marginal physical product or marginal productivity of a variable factor is the increase in total product, or the additional product obtained from the use of an additional unit of a variable factor:. Average physical product or average productivity of a variable factor is the amount of output produced per unit of input of a variable factor:. Suppose that a firm increases production volumes, increasing only the amount of labor, which is the only variable factor, with constant amounts of capital (Fig. 7.1). If the quantity of a variable factor is zero, then the volume of production is also zero. As more and more workers are involved in production, the total volume of output grows and reaches a maximum value (120 units), when the company employs 9 workers, and then, when the tenth worker is hired, the total volume of output begins to decline. An additional worker no longer adds production and even slows down production.

Marginal factor productivity

MARGINAL PRODUCTIVITY OF A FACTOR OF PRODUCTION- contribution of production factor a, equal to the change in income from production product when adding or subtracting a unit of this factor, if the quantities of other factors remain unchanged. Author of the theory of marginal productivity J.B. Clark made the assumption that the distribution of income between factors (more precisely, between their owners) in accordance with the marginal productivity of factors meets the requirements of social justice.

position manufacturer's equilibrium
Pk dL

11 ) Isoquant(constant product curve) - a curve representing an infinite number of combinations of factors of production that provide the same output.

Marginal rate of technical substitution or technological substitution (MRTS)- the amount of one resource that can be reduced in exchange for a unit of another resource while maintaining the total volume of output unchanged.

position manufacturer's equilibrium is achieved when the marginal rate of technological substitution of production factors is equal to the ratio of prices for these factors. Algebraically, this can be expressed as follows:
Pk dL
where Pj Р/г - prices for labor and capital; dK, dL - change in the amount of capital and labor; MRTS - marginal rate of technological substitution.

2. manufacturer's balance

14) Production costs- costs associated with the production of goods. In accounting and statistical reporting are reflected as cost. Includes: material costs, labor costs, interest on loans.

Economic (imputed) costs are business costs incurred, in the opinion of the entrepreneur, by him in the production process. They include:

1) resources acquired by the company;

2) internal resources firms not included in the market turnover

3) normal profit, considered by the entrepreneur as compensation for risk in business.

It is the economic costs that the entrepreneur is obligated to compensate primarily through price, and if he fails to do this, he is forced to leave the market for another field of activity.

Accounting costs are cash expenses, payments made by a company in order to acquire the necessary factors of production on the side. Accounting costs are always less than economic ones, since they take into account only the real costs of purchasing resources from external suppliers, legally formalized, existing in an explicit form, which is the basis for accounting.

Accounting costs include direct and indirect costs. The former consist of costs directly for production, and the latter include costs without which the company cannot operate normally: overhead costs, depreciation charges, interest payments to banks, etc.

The difference between economic and accounting costs is opportunity cost.

Fixed costs are the costs a company incurs regardless of the volume of its production activities. These include: rent for premises, equipment costs, depreciation, property taxes, loans, wages for management and administrative staff.

Variable costs are the company's costs that depend on the volume of production. These include: costs of raw materials, advertising, wages, transport services, value added tax, etc. When expanding production variable costs increase, and when contracted, decrease.

The division of costs into fixed and variable is conditional and is acceptable only for a short period, during which a number of factors of production are unchanged. IN long term all costs become variable.

Gross costs are the sum of fixed and variable costs. They represent the firm's cash costs to produce products. The connection and interdependence of fixed and variable costs as part of general costs can be expressed mathematically (formula 18.2) and graphically (Fig. 18.2).

TC– VC= FC, (18.2)

where FC is fixed costs; VC – variable costs; TC – total costs.

Average costs. Average costs are the gross costs per unit of production.

Average costs can be calculated at the level of both fixed and variable costs, therefore all three types of average costs are usually called the family of average costs.

where ATC is average total costs; AFC – average fixed costs; AVC – average variable costs; Q – quantity of products produced.

You can perform the same transformations with them as with constants and variables:

AFC= ATC–AVC;

AVC= ATC– AFC.

The relationship between average costs can be depicted on a graph (Fig. 18.3).

Costs in the long run. IN market economy firms strive to develop a strategy for their development, which cannot be implemented without increasing production capacity and technical improvement of production. These processes take a long period, which leads to discreteness (discontinuity) of the state of the company over short periods.

Average costs in the long run

ATC – average total costs; ATCj-ATCV – average costs; LATC is the long-run (resulting) average total cost curve.

The intersection line of the ATC curves, projected on the horizontal axis of the graph, shows at what production volumes it is necessary to change the size of the enterprise to ensure further reduction in unit costs, and point M shows the best production volume for the entire long period. LATC curve educational literature often also called a selection curve or wrapper curve.

LATC arcing is associated with positive and negative economies of scale. Up to point M, the effect is positive, and then it is negative. The scale effect does not always immediately change its sign: between positive and negative periods, there may be a zone of constant returns from increasing production size, where the ATS will remain unchanged.

15) There are types of competition (perfect and imperfect):

Perfect competition(olipoly) - a market condition in which there are many producers and consumers who do not influence the market price. This means that demand for products does not decrease as sales increase.

Main advantages perfect competition :

1) Allows you to achieve alignment of economic interests of producers and consumers through balanced supply and demand, through achieving equilibrium price and equilibrium volume.

1) Ensures efficient allocation of limited resources thanks to information included in the price;

2) Orients the manufacturer towards the consumer, that is, towards achieving main goal, satisfying various human economic needs.

Thus, with such competition, the optimal competitive state a market in which there is no profit and no loss.

Disadvantages of Perfect Competition:

1) there is equality of opportunity, but at the same time inequality of results remains.

2) goods that cannot be divided and valued individually are not produced under conditions of perfect competition.

3) different tastes of consumers are not taken into account.

Perfect market competition is the simplest market situation that allows us to understand how the market mechanism really functions, but in reality it is rare.

Imperfect competition- this is competition in which producers (consumers) influence the price and change it. At the same time, the volume of products and access of manufacturers to this market is limited.

Basic conditions of imperfect competition:

1) There are a limited number of manufacturers on the market

2) There are economic conditions (barriers, natural monopolies, state taxes, licenses) for penetration into this production.

3) Market information is distorted and not objective.

All these factors contribute to market imbalance, as a limited number of producers set and maintain high prices to obtain monopoly profits.

There are 3 types:

1) monopoly,

2) oligopoly,

3) monopolistic competition.

16)
Behavior of a firm under conditions of perfect competition

The behavior of a firm depends not only on time, but also on the form of competition. Let's consider rational behavior firms in conditions of perfect competition. Let us remember that the firm's goal is to maximize the gap between prices and costs. In a perfectly competitive market, no firm influences the price of its products. The price is set only under the influence of the general market demand and offers from all companies. If a company increases the price of its products, it will lose customers who will buy its competitor's products. Her sales will drop to zero. This means that the company has no control over the price. The magnitude of its costs is determined by the technology of a given enterprise. What can an entrepreneur do to get maximum profit? It can only change production volumes. The question then becomes: How much of a product should a firm produce and sell to maximize its profit? To answer this question, you need to compare the market price of the product and the firm's marginal cost.

If a firm increases its output by one, two, three, etc. units, then each subsequent unit (say, each new table) will add “something” to both total income and total costs. That "something" is marginal revenue and marginal cost. If marginal revenue is greater than marginal cost, then each unit produced adds more to total revenue than what it adds to total cost.

In this regard, the difference between marginal revenue (MR - marginal revenue) and marginal cost(MC - marginal coast), i.e. profit (P2 - profit), increases:

The opposite occurs when marginal cost is greater than marginal revenue.

Conclusion: the maximum total profit is achieved when equality occurs between price (P - price) and marginal costs (MC - marginal coast):

If P > MC, then production needs to be expanded. If P< МС, то производство необходимо сокращать. В результате на рынке совершенной конкуренции фирма расширяет свое производство до точки, в которой предельные издержки уравниваются с ценой. В этой точке фирма достигает optimal level production and moves to equilibrium.

If the production volume is more or less than optimal, the profit will be less than the maximum.

Therefore, there is only one value of output at which the firm will receive maximum profit.

This rule of profit maximization is true not only for one firm, but for the entire economy.

Conclusion: the economy achieves maximum efficiency in the use of all resources when the marginal costs of producing goods are equal to their prices.

The problem of equilibrium between a firm and an industry in the long run is different than in the short run. An equilibrium position is achieved if the firm produces a certain amount of output at the minimum average cost of a long period, since at this state (point) the price is equal to the marginal cost.

The fact is that if the minimum average cost of a firm exceeds the prices prevailing on the market, then some firms will leave the market and industry supply will decrease. This circumstance will increase the price.

If the minimum average cost is below the market price, then all firms in this industry receive excess profits. This will be an incentive for other firms to move into this industry. As a result, industry supply will increase and the price will fall.

18) The effectiveness of pure competition

Efficiency: Pure competition – produces the maximum amount of product at the minimum cost.

Flaws:

· 1. Each producer takes into account only those costs that pay off, while avoiding external costs and benefits, transferring them to society (protection costs environment, lead to higher prices for products.

· 2. They are not always able to provide the concentration of resources necessary to accelerate the introduction of new technologies, development of new products, etc.

· 3. Standardization of products and failure to provide a sufficient range of consumer choice.

Pure competition and efficiency

As has already been clarified, the condition for long-term equilibrium of a competitive firm is P=MC=ACmin.

This triple equation says that although a competitive firm may make economic profits or losses in the short run,

In the long run, it will cover average total costs by producing according to the ruleMR(P)=MC.

Effective use of limited resources requires the fulfillment of 2 conditions:

1. Production efficiency - requires that each product

was produced in the least expensive way, i.e. with minimal costs (P=ACmin).

2. Allocative efficiency – limited resources

must be distributed between firms and industries so as to obtain a certain range of products that are most needed by society (consumers). P=MS

Are these conditions achieved in a perfectly competitive market? Further analysis will allow us to answer this question in the affirmative. 1. Production efficiency: P=AC(min).

As can be seen from the figure, in the long run, competition forces firms to produce at the point of minimum average costs and set the price that corresponds to these costs. This is obviously the most desirable

situation from the consumer's point of view. It means that firms must use the best production technology available. Consumers benefit from the lowest possible price for the product given the costs

currently prevailing.

2. Efficiency of resource allocation: P=MC.

The price of a product measures the benefit or satisfaction that society receives from an additional unit of the product. And the marginal cost of additional

units measure the loss (or cost) to society of other goods when resources are used for production more of this product. If P > MC, it means that society values ​​additional

unit of a given product is higher than alternative products that could be produced from existing resources.

If MC > P, then this means that resources are used in the production of this product at the expense of alternative goods that society values ​​higher than additional units of this product. Under conditions of perfect competition, each product is produced to the point at which P = MC. This means that resources under conditions of pure competition are allocated efficiently, because Every product is produced to the point. , V

in which the cost of the last unit is equal to the cost of the alternative goods sacrificed in producing it. So, perfect competition helps to allocate limited resources in such a way that

to achieve maximum customer satisfaction. This is ensured under the condition that P = MC.

The market of perfect competition provides an initial, reference model for comparing and assessing the effectiveness of real economic processes in

imperfectly competitive markets.

21) Monopoly is exclusive right production, fishing, trade and other activities owned by one person, a certain group of persons or the state. This means that by its nature, a monopoly is a force that undermines competition and the spontaneous market. An absolute monopoly covering the entire economy completely excludes the mechanism of free market competition. IN different countries and to various historical periods Various types of monopolies arise in the economy: natural, legal and artificial. There are five main forms of monopolistic associations. Monopolies monopolize all spheres of social reproduction: direct production, exchange, distribution and consumption. Based on the monopolization of the sphere of circulation, the simplest forms of monopolistic associations arose: cartels and syndicates. More complex forms of monopolistic associations arose when the process of monopolization extended to the sphere of direct production. On this basis, such a higher form of monopolistic associations as a trust appears.

Monopolies, having an exceptional position, eliminate competitors everywhere, thereby destroying the normal market, reduce the quality of products, ignoring the achievements of scientific and technical progress, and cause a decrease in the overall efficiency of production.

The general form of monopolies develops when an association of entrepreneurs comprehensively, with the help of the state, subjugates the national economy and finds itself in most markets as both the main sellers and the main buyers. At the same time, the state itself acts as the largest monopolist, concentrating in its hands entire industries and productive complexes, such as, for example, the military-industrial complex.

There are two ways to form monopolies: through capitalization of profits or through mergers and acquisitions. IN Lately there is a significant predominance of the latter method.

Monopolies also appeared in Russia, but their development was unique.
The first monopolies were formed in the 80s of the 19th century (Union of Rail Manufacturers, etc.). The uniqueness of the development lay in the direct intervention of government bodies in the creation and operation of monopolies in industries that meet the needs of the state economy, or were of particular importance in its system (metallurgy, transport, mechanical engineering, oil and sugar industries). This led to the early emergence of state-monopoly tendencies. In the 80s and 90s of the 19th century, at least 50 different unions and agreements operated in industry and water transport. Monopolistic concentration also occurred in banking. Foreign capital had an accelerating effect on the process of monopolization. Until the beginning of the 20th century, the role of monopoly in the economy was small. The economic crisis had a decisive impact on their development
1900 – 1903 Monopolies gradually covered the most important industries and most often formed in the form of cartels and syndicates in which sales were monopolized while their participants retained production and financial independence. Associations of the trust type also arose (the Br Nobel partnership, the imprecise trust, etc.).
The absence of legislative and administrative norms regulating the activities of monopolies made it possible for the state to use legislation against them that formally prohibited the activities of monopolies. This led to the proliferation of officially unregistered monopolies, some of which, however, operated with the consent and direct support of the government (Prodparovoz, military-industrial monopolies).
The illegal situation created inconveniences (restrictions on commercial and legal activity) and therefore they sought legalization using permitted forms of industrial associations. Many large syndicates - “Prodmed”, “Produgol”, “Prodvagon”, “Krovlya”, “Lsed”,
“Wire”, “GROWTH”, etc. - were in shape joint-stock enterprises, the actual goals and activities of which were determined by special, unspoken counterparty agreements. During the period of industrial boom “1910 – 1914.” monopolies continued to grow. The number of commercial and industrial cartels and syndicates was 150-200. There were several dozen of them on transport. Many of the largest banks turned into banking monopolies, whose penetration into industry, along with processes and combination of production, contributed to the strengthening and development of trusts, concerns, etc.

Monopolies were eliminated as a result of the October Revolution, during the nationalization of industry and banks. The Soviet state partially used the accounting and distribution bodies of monopolies when creating bodies for managing the national economy.

Characteristics monopolies are as follows:
1. An industry consists of one firm, which is the sole producer of a given product or provider of a service.
2. From the first sign it follows that the buyer must purchase the product from the monopolist or do without it. The fact that there are no close substitutes for the monopolized product has great importance for advertising. However, a monopolist often does not need to use advertising.
3. In conditions of monopolized production, the manufacturer dictates the price and has the ability to manipulate the quantity of the product offered.
4. The existence of a monopoly presupposes the presence of barriers to the entry into the industry of similar industries created by other manufacturers. These barriers may be economic, technical or legal.

22) PRICE DISCRIMINATION

The simple monopoly model is built on the assumption that all

unit of product sold over a specified period of time

Sold at the same price. This pricing policy is

absolutely inevitable in any situation where resale is possible

products. For example, it is highly unlikely that book Shop,

located on a university campus (typical monopoly)

I suddenly started selling economics textbooks to senior students.

one price, and everyone else - with a 25% discount. Even if he

tries to do this, then some smart sophomore will soon

will begin to buy these books for their subsequent sale to senior students at

similar price. Soon the sales of books in this store at the original price will fall

However, not all firms are forced to sell all units of output at

one price. There are companies that charge different prices for different

buyers for the same product. If prices are set for different

buyers does not reflect differences in the firm's costs associated with

individual approach to serving these customers, then the company

engages in price discrimination.

So, a theater sets the price for a ticket at 5 rubles. for adults and 3

rub. for children engages in price discrimination because costs

theaters are the same for all seats. Otherwise, for example,

on a vegetable basis, where the price of 1 ton of potatoes is 4% lower at the wholesale price.

This simply takes into account the difference in costs for different types of cash registers.

operations.

CONDITIONS REQUIRED FOR PRICE DISCRIMINATION

In order for a monopolist company to be able to carry out price

discrimination, the market must meet two conditions. Firstly,

due to impossibility or inconvenience, buyers cannot resell

purchased products. Secondly, the seller must be able

divide buyers into groups based on the elasticity of demand for

goods. After this, those buyers whose demand is high

elasticity, a high price will be offered, and to those whose demand is elastic

Lower.

Discussion of the problem of conditions of discrimination is usually carried out in

context of monopoly theory, however, this is not the only market

structure in which such a phenomenon occurs. Any company capable

set a price for its products if it is able to share

potential buyers depending on the elasticity of their demand

demand, and these latter are, in principle, deprived of the opportunity to resell their

products, sooner or later they are faced with the temptation to use

price discrimination strategy. Power plant charging different prices

for the population and for industrial enterprises, represents a monopoly

Performing price discrimination. Aviation company, taking from

tourists and businessmen pay different fees for tickets, doing the same.

Finally, a restaurant serving select customers at discounted prices

does the same.

Most monopolies are natural and subject to government regulation. That is, utility services can in some way regulate the prices and tariffs of the monopoly. (This refers to industries where the cost structure of the enterprise and the demand for goods do not allow the existence of several firms, that is, the creation competitive industry impossible). The monopolist's profit-maximizing price is higher than its marginal and average costs. This allows the monopolist to earn large economic profits, but leads to increased income inequality and underutilization of resources. If a regulatory commission is trying to achieve an efficient allocation of resources, it will have to set a price ceiling. The maximum price that a monopolist can charge must be equal to its marginal cost.

23 ) Society's losses arising as a result of monopolization of production can be considered by comparing the surplus of consumers and producers in competitive and monopolized markets (assuming that producers in a free competition market and the monopolist have the same cost curves), Fig. 7.19.

Under monopoly conditions, Q M units of output will be produced at a price P M (MC = MR), under conditions of perfect competition - Q C at a price P C - (P = MC).

Consumer surplus is determined on the graph by the area bounded by the demand line and the market price. Thus, by buying less product and at a higher price under a monopoly, consumers lose part of the surplus, shown on the graph of area A + B.

Producer surplus on the graph is the area bounded by the MC line and the market price. The monopolist gains additional surplus, denoted by rectangle A, by selling the product at a higher price, but loses part of the surplus, denoted by triangle C. Thus, his additional surplus will be A - C.

The area on the graph equal to the sum of B + C is the total net loss from monopoly power, that is, the damage caused by a monopoly to society. Even if the monopolist's profits were taxed and redistributed to consumers of the product, efficiency would not be achieved because production volume would be lower than under free competition. The total net loss is the social cost of such inefficiency.

It should be noted that a “pure” monopoly (market share close to 100%), the models of which are considered in theory, practically does not exist in reality. However, an example of this is production protected by a patent.

IN modern conditions However, the world is experiencing further concentration of production and capital. For example, in 1996, two Japanese banks merged, which are the world's largest banks: Mitsubishi (6th in the world) and Bank of Tokyo (14th in the world). As a result, the world's largest bank (1st) was formed.

Rice. 7.19. Damage caused by monopoly

There was also a merger of two English pharmaceutical companies GLAXO and Welcome, as a result, the combined company GLAXO Welcome took first place in the world in terms of sales.

State policy in relation to monopolies consists, first of all, in the development and application of antimonopoly legislation, that is, a system of laws aimed at preventing the monopolization of markets.

However, the issue of attitude towards monopoly remains controversial among economists. Defenders and supporters of monopolies believe that only large-scale production has more incentive and opportunity to introduce innovations. Criticizing the considered model, they note that it makes a serious assumption about the equality of costs in cases of perfect competition and monopoly (one MC line is graphically represented). However, as a rule, the merger of several companies into one leads to a reduction in costs through the creation of unified supply, sales and other services. In addition, it is possible that the return to scale of production will be such that the effective output volume of one enterprise will be equal to the competitive volume or even greater than it. This situation is often observed with natural monopolies.

At the same time, “opponents” of the monopoly note the additional costs of artificially maintaining barriers to entry into the industry, which from the point of view of society are hardly advisable, as well as the fact that the lack of competition inevitably leads to increased costs and inefficiency in management.

Thus, the general verdict economic science is the conclusion that a monopoly is less preferable for society than perfect competition, therefore it is necessary to regulate its activities in order to reduce the amount of social losses

24) Monopoly power is the ability of a company to influence the price of its product by changing the quantity of this product sold on the market.

The degree of monopoly power may vary. A pure monopolist has complete monopoly power because is the only supplier of unique products.

But a pure monopoly is rare, because Most products have close substitutes. At the same time, most firms control price to one degree or another, i.e. have some monopoly power. If there is one monopoly firm operating in the market, we speak of relative monopoly power.

A necessary prerequisite for monopoly power is a downward sloping demand curve for the firm's output.

So, a firm with monopoly power charges a price above marginal cost and earns additional profit, called monopoly profit. Monopoly profit is a form of realization of monopoly power.

The degree of monopoly power, oddly enough, can be measured. The following indicators of monopoly power are used:

1. Lerner's indicator of monopoly power:

The Lerner coefficient shows the extent to which the price of a product exceeds the marginal cost of its production. L takes values ​​between 0 and 1. For perfect competition, this indicator is 0, because P = M.C.. The more L, the greater the monopoly power of the firm. It should be noted that monopoly power does not guarantee high profits, because the amount of profit is characterized by the ratio P And ATC .

2. If we multiply the numerator and denominator of the Lerner exponent by Q, we get a formula for calculating monopoly power index: , or . Thus, high profits in the long run are also seen as a sign of monopoly power.

3. Degree of market concentration, or Herfindahl-Hirschman index:

where Pi is the percentage market share of each firm, or the firm’s share in market supply industry, n is the number of firms in the industry. The greater the firm's share of the industry, the greater the potential for a monopoly to emerge. If there is only one firm in the industry, then n =1, Pi =100%, then H = 10,000. 10,000 is the maximum value of the market concentration indicator. If H< 1000, то рынок считается неконцентрированным. Если Н? ≥ 1800, то отрасль считается высокомонополизированной. Нужно иметь в виду, что this indicator does not give a complete picture if the share of imported goods is not taken into account.

25) With a pure monopoly, there is only one seller in the market. It could be state organization, private regulated monopoly or private unregulated monopoly. In each individual case, pricing is different. A state monopoly can use price policy to achieve a variety of goals. She can set a price below cost if the product has important for buyers who are not able to purchase it at full price. The price may be based on covering costs or obtaining good income. Or it may be that the price is set very high to reduce consumption in every possible way. In the case of a regulated monopoly, the government allows the company to set prices that provide a “fair rate of return” that will enable the organization to maintain production and, if necessary, expand it. Conversely, in the case of an unregulated monopoly, the firm itself is free to set any price that it can bear.
market And yet, for a number of reasons, firms do not always charge the highest possible price. Fear of the introduction of government regulation, reluctance to attract competitors, or the desire to penetrate faster - thanks to low prices- to the entire depth of the market.

Unless operating in purely competitive markets, firms need to have a structured method for setting the reference price for their products.

27) Price policy An oligopolist company plays a huge role in her life. As a rule, it is not profitable for a firm to raise prices for its goods and services, since there is a high probability that other firms will not follow the first one, and consumers will “move” to a rival company. If a company lowers prices for its products, then, in order not to lose customers, competitors usually follow the company that lowered prices, also reducing prices for the goods they offer: a “race for the leader” occurs. Thus, so-called price wars often occur between oligopolists, in which firms set a price for their products that is no more than that of the leading competitor. Price wars can often be devastating for companies, especially those competing with more powerful and larger firms.

What is meant by marginal productivity?

Let us show this with an example that may be useful to us later in the presentation.

Consider an agricultural enterprise that grows wheat. Let us assume that no fertilizers were applied and that the yield was still 15 quintals. with hectares Let us now see what happens when successively increased doses of chemical fertilizers are used, assuming that all other production conditions remain unchanged. With the use of the first quintal of fertilizers, the yield will jump to 20 quintals. from 1 hectare, using the second - it will reach 30 c. etc. (Table 1).

The increase in product due to an increase in the amount of a given production factor - chemical fertilizer - shows average performance individual units of this factor. If we assume that changes in the quantities of fertilizer used are represented not by centners, but by minimal values ​​- infinitesimal, hundredths, thousandths, ten-thousandths of a centner, then we will also have infinitesimal changes in the amount of production, which will give us productivity at a given point, or marginal performance.

It is, therefore, defined as the ratio of the resulting increase in the product to the increase in the factor of production in question, with infinitesimal quantities of both and on the assumption that all other factors of production are quantitatively constant. Since this concept assumes that other conditions do not change, it is generally applicable only to a short period.

What we have said can be expressed graphically; rectangles correspond to average increases; line - infinitesimal, or marginal, increase (Fig. 14).

The entire product will therefore increase with an increase in the amount of the factor “fertilizer” (capital), but starting from the third increase in this factor, the increase in the product will go at a decreasing rate, as a result of which, when expressing this phenomenon graphically, a curve will be obtained, first rising up and then falling down.

We gave an example in which the “capital” factor changes and the “labor” factor remains constant. Naturally, the same thing happens if we proceed from changes in the “labor” factor.

Let us turn, as before, to agricultural production. Let us assume that on a plot of 10 hectares, if there is some technical equipment T employs 30 agricultural workers producing 200 quintals. wheat. Suppose that by adding one more worker and keeping other conditions constant, the product will increase from 200 to 203 quintals. We can attribute this increase in output to the 31 workers added. In this case, the marginal productivity of labor (i.e., the only factor that has changed in value) will be:

• 203-200=3 (centners of wheat)
• 31-30=1 (working)

If this concept is extended to production in general, then we can notice that if other factors of production remain unchanged and only one of them changes (increases), then this single factor leads to an increase in production that can be attributed to it, but this increase sooner or later will begin to fade. In other words, at a certain point the marginal productivity of the factor in question will decrease if it is still assumed that all other factors remain constant.

This is called the law of diminishing marginal productivity. This law operates in a short-term time interval when one production factor remains unchanged. The effect of the law presupposes the unchanged state of technology and production technology. If the production process uses latest inventions and other technical improvements, then an increase in output can be achieved using the same production factors, i.e. technological progress may change the scope of the law.

If capital is a fixed factor and labor is a variable factor, then the firm can increase production by using more labor resources. But on the law of diminishing marginal productivity, a consistent increase in a variable resource while others remain constant leads to diminishing returns for this factor, i.e. to a decrease in the marginal product or marginal productivity of labor. This law is universal in nature and is characteristic of almost all economic processes. If the hiring of workers continues, then eventually they will interfere with each other (marginal productivity will become negative), and output will decrease.

Marginal labor productivity (marginal product of labor - MP L) is the increase in production volume from each subsequent unit of labor:

those. the increase in productivity to total product (TP L) is equal to

1. Marginal product

The more labor a firm uses in the production process, the more output it produces.

marginal productivity labor product

The marginal product of labor (MPL) is the additional quantity produced resulting from the use of an additional unit of labor.

MPL = F (K, L +1) - F (K, L).

Most production functions have the property diminishing marginal product. At a constant amount of capital employed, the marginal product of each additional unit of labor decreases.

Marginal product of labor (MPL) - shows the increase in total product with an increase in the amount of labor per unit.

It is calculated using one of two possible formulas:

discrete marginal product

• § - two subsequent values ​​of the total product (output volume)
• § - respectively, two subsequent values ​​of the variable resource (labor)

The discrete marginal product formula is used in the case when there are only quantitative values ​​of output and resources used per unit of time, but the production function is not known.

To increase productivity, all valuable resources must be taken into account. And valuable resources in modern world is the harmony of man and the latest technology.

The efficiency of using labor resources at an enterprise is expressed in changes in labor productivity, the resulting indicator of the enterprise’s performance, which reflects how positive sides work, and all its shortcomings.

Labor productivity, which characterizes the efficiency of labor inputs in material production, is determined by the quantity of products produced per unit of working time, or labor inputs per unit of output. There is a distinction between the productivity of living labor and the productivity of aggregate, social labor.

The productivity of living labor is determined by the expenditure of working time in this production, on this enterprise, and performance social labor- costs of living and social labor. With scientific and technological progress and production improvement, the share of social labor costs increases, as the worker’s equipment with ever new means of labor increases (from the simplest machines to electronic complexes). However, the main trend is that the absolute value of the costs of both human and social labor per unit of output is decreasing. This is precisely the essence of increasing the productivity of social labor.

* The level of labor productivity is characterized by two indicators:

production output per unit of time (direct indicator);

labor intensity of manufacturing products (reverse indicator).

These output and labor intensity indicators can be represented by the following formulas:

b=W/T; t= T/V,

where b is production output per unit of time; I -- labor intensity of production; V -- volume of products produced, rub.; T -- costs of living labor for production, rub.

Product output is the most common and universal indicator of labor productivity. Depending on the units in which the volume of production is measured, a distinction is made between the definition of output in physical terms and in terms of standard working hours.

Labor productivity is most clearly characterized by the indicator of production output in physical terms. These are units of measurement such as tons, meters, pieces, etc., as a rule, characteristic of enterprises producing homogeneous products.

If an enterprise or workshop produces several types or brands of homogeneous products, then output is determined in conventional units. For example, in blast furnace shops, when determining output, various types of smelted cast iron are reduced to ultimate cast iron, in open-hearth shops, various types of smelted steel are reduced to simple carbon steel, cement - to conventional Portland cement, etc.

The indicator of product output in monetary terms is used to determine labor productivity at enterprises producing heterogeneous products.

When using temporary working time standards, production is determined in standard hours, mainly at individual workplaces, in teams, in sections, as well as in workshops when producing heterogeneous and unfinished products that cannot be measured either in kind or in monetary terms .

Output indicators also differ depending on the unit of measurement of working time. Output can be determined per one worked man-hour (hourly output), one worked man-day (daily output), per one average worker per year, quarter or month (annual, quarterly or monthly output).

The labor intensity of a product expresses the cost of working time to produce a unit of product. Determined per unit of production in physical terms across the entire range of products and services; at large assortment products at an enterprise are determined by typical products to which all others are reduced. In contrast to the output indicator, this indicator has a number of advantages: it establishes a direct relationship between the volume of production and labor costs, eliminates the impact on the labor productivity indicator of changes in the volume of supplies through cooperation, organizational structure production, allows you to closely link the measurement of productivity with the identification of reserves for its growth, to compare labor costs for identical products in different workshops of the enterprise.

Depending on the composition of included labor costs, they are distinguished:

technological labor intensity, including all costs of main workers, piece workers and time workers (ttech),

labor intensity of production maintenance, including labor costs of auxiliary workers, (tobs);

production labor intensity - labor costs of all workers, both main and auxiliary:

labor intensity of production management, including the labor costs of engineers, employees, service personnel and security (tupr),

total labor intensity, which represents the labor costs of all categories of industrial production personnel:

tfloor=ttech+tobs+tcontrol.

An important stage of analytical work at an enterprise is the search for reserves of labor productivity, the development of organizational and technical measures for the implementation of these reserves and the direct implementation of these measures. Reserves for growth of labor productivity are understood as not yet used opportunities for saving the costs of living and embodied labor. In-production reserves are due to the improvement and most efficient use of technology and work force, reducing working time, saving raw materials and materials, rational use of equipment. Intra-production reserves include reserves for reducing labor intensity, reserves for improving and using working time, reserves for improving the personnel structure, reserves for saving objects of labor and reserves for saving means of labor.

* The increase in labor productivity due to an increase in production volumes and changes in the number of workers is determined by the following formula:

where is the percentage of increase in output at the enterprise in a given period;

Percentage of reduction in the number of employees of the enterprise.

The increase in labor productivity of workers at the enterprise P (%) due to an increase in the share of cooperative supplies of products is determined by the following formula:

where is the share of cooperative supplies in the gross output of the enterprise, respectively, in the base and planned periods, %.

The increase in labor productivity due to better use of working time is calculated using the formula:

where is the effective annual working time of one worker, respectively, in the base and planned periods, man-hour.

* It should be noted that the indicator of marginal labor productivity refers to a market economy, where labor is one of the factors of production and there is a labor market.

An individual enterprise, deciding how many workers it should hire, must determine the price of demand for labor, i.e. the level wages. The price of demand for any factor of production and labor is no exception here and depends on its marginal productivity, i.e., on the marginal productivity of labor.

Marginal labor productivity is the increase in the volume of output caused by the use of an additional unit of labor with other conditions fixed.

Marginal productivity of labor is calculated based on the marginal product of labor, which is understood as the increase in output produced as a result of hiring one more additional unit of labor.

Consequently, the management of the enterprise, based on the need to optimize all attracted resources, will use or displace labor, reaching the level of maximum productivity. And no one will force him to act differently, since the interests of the enterprise’s survival in a competitive environment are at risk.

In such a situation, the problem of excess labor arises, i.e. unemployment, underemployment. The problem of rational use of labor becomes equally important both for enterprise managers, i.e. employers, and for government authorities, which must resolve issues of social protection of people who are temporarily unemployed.