How is marginal product affected if workers are added who are equally good at the job?
a. The increase in workers will eventually cause marginal output to fall.
b. The value of marginal output increases more with each additional good worker.
c. With equivalent workers, marginal productivity will neither rise nor fall.
d. Marginal quality will improve as the added workers gain experience.
a. The increase in workers will eventually cause marginal output to fall.
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Economic efficiency and income equality are often conflicting goals in an economy
a. True b. False Indicate whether the statement is true or false
Suppose a firm anticipates that an R&D expenditure of $100 million will result in a new production process that will reduce costs and thus create a one-time added profit of $112 million a year later. The firm's expected rate of return is:
A. 0.12 percent. B. 112 percent. C. 12 percent. D. 2 percent.