Assume That a Firm Hires an Additional Employee

question 154

Multiple Choice

Assume that a firm hires an additional employee.If the marginal product for that employee is greater than for the previous employee hired,it must be because

• A) the marginal product of labor is diminishing.
• B) all workers are paid the same wage.
• C) the workers all perform the exact same set of tasks.
• D) there are gains from specialization.
• E) all workers are not paid the same wage.

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Definitions:

Spinal Cord

A long, thin, tubular structure made up of nervous tissue that extends from the brainstem down the vertebral canal, playing a critical role in transmitting neural signals between the brain and the rest of the body.

Brain

The central organ of the human nervous system, located in the skull, responsible for cognitive and bodily functions.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, responsible for connecting the CNS to limbs and organs.

Muscle Control

The ability to direct and coordinate muscle actions in the body for voluntary movements.