Suppose That a Public Accounting Firm Plans to Hire Some

question 94

Multiple Choice

Suppose that a public accounting firm plans to hire some accountants for tax season. What will happen to the marginal product of labor as the firm hires more and more accountants?

• A) The marginal product of labor will increase because preparing tax returns requires high levels of education and experience.
• B) The marginal product of labor will increase because completing and filing tax returns requires team production techniques.
• C) The marginal product of labor will decline because each subsequent accountant that is hired will be assigned to work on less important (i.e., less lucrative) tax returns.
• D) The marginal product of labor will not change because the practice of accounting is quite standardized, forcing all accountants to follow the uniform procedures set forth in federal tax law.

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Definitions:

Metals

Elements that are good conductors of electricity and heat, have a shiny appearance, and are malleable and ductile.

Tin

A chemical element with the symbol Sn and atomic number 50, known for its corrosion resistance and used in alloys and coatings.

Zinc

A metallic element with symbol Zn, necessary for human health and used in alloys such as brass, in galvanization, and in various chemical reactions.

Copper

A reddish-brown, malleable, ductile metallic element with high electrical and thermal conductivity, used in a wide variety of applications.