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

question 35

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) specialisation 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.

---

Definitions:

Consulting Revenues

Income generated from providing expert advisory services to clients.

Additional Investment

Funds that are injected into a business by its owners or shareholders beyond the initial investment, to support operations or growth.

International Accounting Standards

A set of accounting standards developed and overseen by the International Accounting Standards Board (IASB) to ensure transparency, accountability, and efficiency in financial markets worldwide.

Multinational Corporations

Multinational corporations are companies that operate in multiple countries, often with a centralized headquarters but localized operations.