Increasing marginal returns to labour
A) are the result of specialisation and division of labour in the production process.
B) occur only when there are increasing marginal returns to capital.
C) describe the portion of a total product curve where the marginal product is negative.
D) mean that two workers produce less than twice the output of one worker.
E) occur when a particularly efficient worker is employed.

Question

Quizplus · Accepted Answer

Increasing marginal returns to labour refer to a situation where the addition of one more unit of labour results in an increase in output that is greater than the increase in input. This is typically due to specialisation and division of labour, where each worker is assigned a specific task that maximises their productivity, leading to an increase in overall output.

Increasing Marginal Returns to Labour