The Division of Labor and Specialization Explain

question 289

Multiple Choice

The division of labor and specialization explain

• A)why, when the marginal product of labor increases, so does the average product of labor.
• B)why the average product of labor falls when firms use more capital or change the layout of their businesses.
• C)why the marginal product of labor rises as a firm hires its first units of labor.
• D)why firms may find it profitable to use more workers when the marginal product of labor is negative.

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Definitions:

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Interstate Commerce Clause

A provision in the U.S. Constitution granting Congress the power to regulate commerce among the states.

Individual Mandate

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American Federalism

A political system in which power is divided and shared between a national, or federal, government and state governments, each with its own set of powers.