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 skillful.
D) beyond some point, a firm has hired too many workers.

Question

Quizplus · Accepted Answer

Specialisation allows a worker to focus on one task, thereby increasing their proficiency at that task. As more workers are hired, they can be assigned to specific tasks, which they become increasingly skilled at performing. This can initially increase the overall productivity of the firm, resulting in a higher marginal product of labour.

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