DQuestion 2 1 pts Wheelies Bicycles is experiencing substantial growth in sales

Question

DQuestion 2 1 pts Wheelies Bicycles is experiencing substantial growth in sales and has decided to hire more employees. However, they are yet to invest in additional equipment. Other things remaining unchanged, what is likely to happen to the marginal product of each new worker in the short run? It will be the same as the previous workers hired, meaning each additional worker will have the same marginal product of labor as the previous one hired. O It will change cyclically, meaning that it will cycle up and down as more workers are hired It will be increasing at a decreasing rate, meaning each additional worker will have a lower marginal product of labor than the previous one hired. O It will be increasing at an increasing rate, meaning each additional worker will have a higher marginal product of labor than the previous one hired.

Explanation / Answer

Other things remaining unchanged, the marginal product of each new worker in the short run is increasing at a decreasing rate , meaning each additonal worker will have a lower marginal product of labor than the previous one hired. Hence, option(C) is correct.

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