Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
They always increase
B
They always decrease
C
They may increase or decrease
D
They remain constant
Understanding the Answer
Let's break down why this is correct
Answer
When more workers are hired while keeping the amount of equipment and tools the same, we often see something called diminishing marginal returns. This means that each new worker added produces less extra output than the worker before them. For example, if the first worker makes 10 toys in an hour, the second might only make 8 toys, and the third could make just 5. This happens because there are limited resources, like machines, to share among the workers. So, as more workers come in, they have to share the same tools, which can lead to crowded conditions and less efficiency.
Detailed Explanation
When you add more workers but keep machines the same, each worker has less to work with. Other options are incorrect because Some might think that more workers always mean more output; It's a common mistake to think that returns can change in any direction.
Key Concepts
Labor supply
Topic
Marginal Returns and Labor Supply
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.