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