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This is the wrong number. The average revenue per employee isn't what determines a wage, even when the employees are fully interchangeable: it's the marginal re
by fennecfoxen 7y ago
This is the wrong number. The average revenue per employee isn't what determines a wage, even when the employees are fully interchangeable: it's the marginal revenue brought in by each extra employee.
- sailfast 7y agoI’d go further and say “marginal net revenue” rather than the gross. Using a revenue number for this makes no sense. Let’s ignore for now that this revenue also owes a great deal to the commons that is never paid back by most companies.
- quotemstr 7y agoOne of the persistent sources of economic misunderstanding is the difficulty of marginal thinking. It's frequently counterintuitive and leads to a false sense of injustice, e.g., "If teachers are so important, why are they paid so little?"