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Decreasing Marginal Returns Occur in the Short Run as More

Question 14

Multiple Choice

Decreasing marginal returns occur in the short run as more labour is hired to work in a fixed sized plant because


A) the plant becomes less specialised.
B) adding more workers exhausts the possible gains from specialisation.
C) the entrepreneur does not know how to manage more workers.
D) less efficient and less productive workers are hired.
E) each worker will produce more than the worker previously hired.

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