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.

---

Definitions:

Loudness

A perceptual attribute of sounds that indicates the intensity or volume, as perceived by the ear.

Decibels

A unit used to measure the intensity of sound, with higher decibels indicating louder sounds.

Precognition

The purported psychic ability to see or know about events before they happen.

Telekinesis

The purported psychic ability allowing a person to influence a physical system without physical interaction.