Which of the following describes how output changes in the short run? Because of specialisation and the division of labour, as more workers are hired
A)output will first increase at an increasing rate, then output will increase at a decreasing rate.
B)output will first decrease at an increasing rate, then increase at a decreasing rate.
C)the marginal product of labour will first decrease, then increase at a decreasing rate.
D)the marginal product of labour will first be negative and then will be positive.

Question

Quizplus · Accepted Answer

As more workers are hired, output will first increase at an increasing rate because of specialization and the division of labor. However, as more and more workers are added, diminishing marginal returns will set in, causing output to increase at a decreasing rate. Therefore, option A is the correct answer. Options B, C, and D are incorrect as they do not accurately describe the relationship between output and the marginal product of labor in the short run.

Which of the Following Describes How Output Changes in the Short