Increasing marginal returns to labor might occur at low levels of labor input because of
A) increasing average costs.
B) differing factor proportions.
C) increasing specialization of tasks.
D) decreasing use of machinery and increasing use of technology.

Question

Quizplus · Accepted Answer

Increasing marginal returns to labor can occur at low levels of labor input due to increasing specialization of tasks, where workers become more efficient as they focus on specific tasks.

Increasing Marginal Returns to Labor Might Occur at Low Levels