Increasing marginal returns to labor
A) occur when a particularly efficient worker is employed.
B) describe the portion of a total product curve where the marginal product is negative.
C) mean that two workers produce less than twice the output of one worker.
D) are the result of specialization and division of labor in the production process.
E) occur only when there are increasing marginal returns to capital.

Question

Quizplus · Accepted Answer

Increasing marginal returns to labor occur when specialization and division of labor are utilized in the production process. This allows workers to specialize in specific tasks, leading to increased efficiency and productivity.

Increasing Marginal Returns to Labor