One reason why, in the short run, the marginal product of labour might increase initially as more workers are hired is that
A)the first workers hired get to use the best equipment.
B)specialisation 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 skilful.
D)beyond some point, a firm has hired too many workers.

Question

Quizplus · Accepted Answer

Specialisation allows workers to focus on one task, increasing their proficiency at that task. The initial increase in the marginal product of labour occurs due to the benefits of specialisation. However, after a certain point, diminishing returns to labour will set in and the marginal product of labour will decrease.

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