The division of labour and specialisation explain
A)why, when the marginal product of labour increases, so does the average product of labour.
B)why the average product of labour falls when firms use more capital or change the layout of their businesses.
C)why the marginal product of labour rises as a firm hires its first units of labour.
D)why firms may find it profitable to use more workers when the marginal product of labour is negative.

Question

Quizplus · Accepted Answer

The division of labour and specialisation allow for workers to focus on specific tasks, leading to increased efficiency and productivity. As a firm hires its first few units of labour, each additional worker can be assigned to a specific task, leading to an increase in the marginal product of labour. This, in turn, leads to an increase in the average product of labour as the overall productivity of the firm improves.

The Division of Labour and Specialisation Explain