A firm has a certain amount of capital and land. As it hires more labor, each worker is able toGroup of answer choicespurchase more capital.purchase more land.specialize.work more overtime.earn a higher wage.
Question
A firm has a certain amount of capital and land. As it hires more labor, each worker is able toGroup of answer choicespurchase more capital.purchase more land.specialize.work more overtime.earn a higher wage.
Solution
The correct answer is "specialize." As a firm hires more labor, each worker is able to specialize in a specific task or role. This is due to the division of labor, where the work is divided among individuals with specialized skills. This allows for increased efficiency and productivity as each worker becomes an expert in their specific task. This does not necessarily mean that each worker can purchase more capital or land, work more overtime, or earn a higher wage.
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