Suppose a Manager Is Deciding How to Allocate Workers Between

question 23

Multiple Choice

Suppose a manager is deciding how to allocate workers between two plants.The marginal product of labour in plant 1 is 10 units of output.The marginal product of labour in plant 2 is 14 units of labour.What should the manager do?

• A) Reallocate workers from plant 1 to plant 2 because MP_L is greater in plant 1 than in plant 2
• B) Reallocate workers from plant 1 to plant 2 because MP_L is greater in plant 1 2 than in plant 1
• C) Reallocate workers from plant 2 to plant 1 because MP_L is greater in plant 1 than in plant 2
• D) Reallocate workers from plant 2 to plant 1 because MP_L is greater in plant 2 than in plant 1

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Definitions:

Bypassing

The act of avoiding or circumventing an obstacle or barrier, often used in the context of communication to describe misunderstandings that arise from the use of vague or ambiguous language.

Traditional Media

Forms of mass communication existing before the advent of digital media, including newspapers, magazines, radio, and television.

Antitrust

Laws and regulations designed to promote competition and prevent monopolies in the market.

Organized Recreation

Structured forms of leisure activities that are planned or regulated by organizations or institutions, aimed at providing entertainment or skill development.