As a firm hires more workers, holding capital and other factors constant, the marginal physical product of labor(MPPL) declines because a) the amount of other inputs each worker has to work with declines as the number of workers increases. b) less efficient workers are hired as the number of workers increase. c) there are diseconomies of scale. d) workers don't perform well in teams.
As a firm hires more workers, holding capital and other factors constant, the marginal physical product of labor(MPPL) declines because a) the amount of other inputs each worker has to work with declines as the number of workers increases. b) less efficient workers are hired as the number of workers increase. c) there are diseconomies of scale. d) workers don't perform well in teams.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 15SQ
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As a firm hires more workers, holding capital and other factors constant, the marginal physical product of labor(MPPL) declines because
a) the amount of other inputs each worker has to work with declines as the number of workers increases.
b) less efficient workers are hired as the number of workers increase.
c) there are diseconomies of scale.
d) workers don't perform well in teams.
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