One reason why, in the short run, the marginal product of labor might increase initially as more workers are hired is that
A)the first workers hired get to use the best equipment.
B)specialization allows a worker to focus on one task, thereby increasing her proficiency at that task.
C)the best workers are hired first and later hires are not as skillful.
D)beyond some point, a firm has hired too many workers.

Question

Quizplus · Accepted Answer

When more workers are hired, there can be a division of labor, which allows each worker to specialize in a particular task. This can result in increased efficiency and productivity, leading to an initial increase in the marginal product of labor. However, beyond a certain point, additional workers may lead to diminishing returns and a decrease in the marginal product of labor.

One Reason Why, in the Short Run, the Marginal Product