Carlo implemented some management changes that increased worker productivity in his company. This increased the _____ and led him to _____ workers.

Question

Quizplus · Accepted Answer

The marginal revenue product of labor (MRPL) is the additional revenue generated from hiring an additional worker. If Carlo implemented management changes that increased worker productivity, it means that the MRPL increased as well. Therefore, he would be incentivized to hire more workers to take advantage of the increased productivity and revenue. Therefore, choice B is correct. Choices A, C, and D are incorrect because they do not align with the concept of MRPL or productivity increases.

Carlo Implemented Some Management Changes That Increased Worker Productivity in His