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:

Reliability

The quality of being dependable or reliable; in products, it refers to the likelihood of them performing consistently over their expected lifecycle.

Mathematical Probability

The quantitative measurement of the likelihood of a certain event occurring, based on mathematical calculations.

Stipulated Time

A specified or agreed-upon period in which something is to be done or accomplished.

Total Quality Management

A comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback.