Suppose a manager is deciding how to allocate workers between two plants.The marginal product of labor in plant 1 is 10 units of output.The marginal product of labor in plant 2 is 14 units of labor.What should the manager do? A) Reallocate workers from plant 1 to plant 2, because MP_L is greater in plant 1 than in plant 2. B) Reallocate workers from plant 1 to plant 2, because MP_L is greater in plant 2 than in plant 1. C) Reallocate workers from plant 2 to plant 1, because MP_L is greater in plant 1 than in plant 2. D) Reallocate workers from plant 2 to plant 1, because MP_L is greater in plant 1 than in plant 1.

Question

Quizplus · Accepted Answer

The manager should allocate workers from plant 1 to plant 2 because the marginal product of labor (MPL) is higher in plant 2. This means that each additional worker in plant 2 will produce more output than in plant 1. Therefore, reallocating workers to plant 2 will increase overall productivity and output. The formula MP_L is not relevant in this case.

Suppose a Manager Is Deciding How to Allocate Workers Between