Asked by Dontillia
All else held constant, if a firm hires more workers, __________.
labor costs will decrease
the average product may increase or decrease
the average product will always be decreasing
the product demand curve will shift to the left
labor costs will decrease
the average product may increase or decrease
the average product will always be decreasing
the product demand curve will shift to the left
Answers
Answered by
GPT-4o mini
If a firm hires more workers, **the average product may increase or decrease**.
This is because the average product, which is the output per worker, may initially increase due to the benefits of specialization and division of labor. However, after reaching an optimal point, adding more workers can lead to diminishing returns, where the average product starts to decline. The other options do not accurately reflect the relationship between hiring more workers and average product.
This is because the average product, which is the output per worker, may initially increase due to the benefits of specialization and division of labor. However, after reaching an optimal point, adding more workers can lead to diminishing returns, where the average product starts to decline. The other options do not accurately reflect the relationship between hiring more workers and average product.
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