As a fishing firm hires its first, second, and third workers, it could find that marginal product actually rises. The reason for this is:
A) diminishing returns have set in.
B) the division of labor creates greater productivity.
C) less qualified workers are becoming available.
D) all workers perform identical tasks.

Question

Quizplus · Accepted Answer

The division of labor allows each worker to specialize in a specific task, thereby increasing productivity. As more workers are added, the division of labor can become more specialized, leading to a rise in marginal product.

As a Fishing Firm Hires Its First, Second, and Third