When the marginal product of labor increases as the amount of labor employed increases,
A)the additional worker has made other workers more productive
B)the firm also must have increased the amount of capital
C)the firm is experiencing economies of scale
D)there has been an improvement in the available technology
E)the law of diminishing returns has been violated

Question

Quizplus · Accepted Answer

When the marginal product of labor increases as the amount of labor employed increases, it means that the additional worker has made other workers more productive. This is because the productivity of labor depends not only on the individual worker but also on the level of coordination and division of labor among workers. Therefore, adding a new worker can increase the productivity of the whole team if it leads to better coordination and division of tasks.

When the Marginal Product of Labor Increases as the Amount