At Hamill Manufacturing of Pennsylvania,highly skilled senior machinists are paid $70,000,excluding benefits,but the average skilled machinist generates approximately $137,000 in value added.This is partially because diminishing returns to labor cause the value of the marginal product of the last machinist hired to be less than the average of all of the machinists currently employed.

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Quizplus · Accepted Answer

The statement is true, as it mentions that the value added by the average skilled machinist is higher than the salary paid to highly skilled senior machinists, and this can be attributed to the concept of diminishing returns to labor.

At Hamill Manufacturing of Pennsylvania,highly Skilled Senior Machinists Are Paid