If another worker is hired with a marginal product greater than the previously hired worker,which of the following will be true?
A) total costs will decrease
B) fixed costs will decrease
C) marginal cost will increase
D) marginal cost will decrease
E) average fixed costs will increase

Question

Quizplus · Accepted Answer

When a new worker is hired with marginal product greater than the previous worker, marginal cost will decrease because the additional output produced by the new worker will be greater than their additional cost of hiring. This increases production efficiency and reduces the cost of each additional unit produced.

If Another Worker Is Hired with a Marginal Product Greater