If there are gains from specialization in a workplace,hiring another employee means that the marginal product of labor will:

Question

Quizplus · Accepted Answer

The concept of gains from specialization suggests that by dividing tasks and allowing workers to specialize in their assigned tasks, the overall productivity of each worker increases. Therefore, when a new worker is hired and the tasks are divided, the productivity of each worker will increase, and hence the marginal product of labor will increase. Thus, the correct answer is choice C, i.e., increase.

If There Are Gains from Specialization in a Workplace,hiring Another