Multiple Choice
The division of labour and specialisation explain
A) why, when the marginal product of labour increases, so does the average product of labour.
B) why the average product of labour falls when firms use more capital or change the layout of their businesses.
C) why the marginal product of labour rises as a firm hires its first units of labour.
D) why firms may find it profitable to use more workers when the marginal product of labour is negative.
Correct Answer:

Verified
Correct Answer:
Verified
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