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

question 122

Multiple Choice

One reason why, in the short run, the marginal product of labor 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:

Domestic Consumers

Individuals or entities within a country that purchase goods and services.

Domestic Producers

Companies or individuals that produce goods or services within their home country.

Equilibrium Price

The cost at which the volume of goods available equals the volume sought by consumers.

Equilibrium Quantity

The amount of products or services available and sought after at the balance price.