As a Fishing Firm Hires Its First, Second, and Third

question 8

Multiple Choice

As a fishing firm hires its first, second, and third workers, it could find that marginal product actually rises. The reason for this is:

• A) diminishing returns have set in.
• B) the division of labor creates greater productivity.
• C) less qualified workers are becoming available.
• D) all workers perform identical tasks.

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Definitions:

Limited Liability Company

A Limited Liability Company (LLC) is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.