In the Short Run, Marginal Product of Labour Increases at First

Multiple Choice

In the short run, marginal product of labour increases at first and then falls because

A) as more labour is hired, they are not as skilled as the first ones hired.
B) there are fewer opportunities for division of labour and specialisation when fewer workers are hired.
C) managerial inefficiency sets in when a firm gets too large.
D) the new workers do not have as much experience as those who have been with the firm for a long time and therefore are not as productive.