Solved

In the Short Run, Why Does a Production Function Eventually

Question 38

Multiple Choice

In the short run, why does a production function eventually display diminishing returns to labor?


A) As the number of workers increases, it becomes difficult to monitor them.
B) As a firm hires more workers, the skills and the work ethic of the additional workers will eventually decline.
C) As the number of workers increases, eventually the gains from the division of labor and specialization are used up.
D) The opportunity cost of hiring additional workers must eventually rise.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions