The Division of Labour and Specialisation Explain

question 101

Multiple Choice

The division of labour and specialisation explain

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