At Hamill Manufacturing of Alberta,highly skilled senior machinists are paid $70 000,excluding benefits,but the average-skilled machinist generates approximately $137 000 in value added.This is partially because diminishing returns to labour cause the value of the marginal product of the last machinist hired to be greater than the average of all of the machinists employed.

Question

Quizplus · Accepted Answer

Diminishing returns to labor imply that the value of the marginal product of the last machinist hired would be less than the average of all machinists employed, not greater.

At Hamill Manufacturing of Alberta,highly Skilled Senior Machinists Are Paid