The Marginal Product of Labor Initially Rises as More Labor

question 36

Multiple Choice

The marginal product of labor initially rises as more labor is employed because of:

• A) division and specialization of labor.
• B) constant returns to scale.
• C) total factor productivity.
• D) an increase in profits from the additional output produced.
• E) a fall in the cost of hiring additional labor.

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Definitions:

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A psychological concept referring to the degree to which individuals believe they have control over the outcomes of events in their lives.