In the Short Run, Marginal Product of Labor Increases at First

question 188

Multiple Choice

In the short run, marginal product of labor increases at first and then falls because

• A)as more labor is hired, they are not as skilled as the first ones hired.
• B)there are fewer opportunities for division of labor and specialization when fewer workers are hired.
• C)managerial inefficiency sets in when a firm gets too large.
• D)the new workers do not have as much experience as those who have been with the firm for a long time and therefore are not as productive.

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