One Reason Why, in the Short Run, the Marginal Product

question 165

Multiple Choice

One reason why, in the short run, the marginal product of labour might increase initially as more workers are hired is that

• A)the first workers hired get to use the best equipment.
• B)specialization allows a worker to focus on one task, thereby increasing her proficiency at that task.
• C)the best workers are hired first and later hires are not as skillful.
• D)beyond some point, a firm has hired too many workers.

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Definitions:

U.S. History

The study of the history of the United States, from its early indigenous and colonial periods through its formation as a nation and subsequent development and transformations.

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A deal in which two or more companies combine to form a new entity, with the combined value of the merger being $100 billion.

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A variation in the amount of goods or services produced or supplied, often measured to assess economic shifts or business performance.

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A sector of the economy that involves the production and manufacturing of goods or the provision of services.