Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The marginal product of labor exceeds the wage paid to the worker.
B
The additional worker automatically increases output regardless of other factors.
C
The business has reached maximum efficiency and cannot increase production further.
D
The cost of hiring the worker is lower than the cost of materials used.
Understanding the Answer
Let's break down why this is correct
Answer
When a business hires an additional worker, it usually means they can produce more goods or services. This happens because the new worker can help share the tasks, making the overall work more efficient. For example, if a bakery has one baker and then hires a second, they can bake more bread in the same amount of time since they can work together. The increase in production from the new worker is called the marginal product, which is the extra output gained from adding one more worker. Overall, this shows how an additional worker can help a business grow by increasing its total output.
Detailed Explanation
When a business hires another worker, the extra output they create is greater than the cost of their wages. Other options are incorrect because It's a common mistake to think that just adding a worker will always boost output; Some might think that once a business is efficient, it can't produce more.
Key Concepts
Marginal Product of Labor
Optimal Resource Allocation
Labor Market Dynamics
Topic
Marginal Product Analysis
Difficulty
easy level question
Cognitive Level
understand
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