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When More Workers Are Hired, the Firm's Output Expands at an Increasing

Question 5

Multiple Choice

When more workers are hired, the firm's output expands at an increasing rate only


A) when the law of diminishing returns is operative
B) under conditions of noncompeting labor markets
C) if each worker's MPP is positive
D) when technology is improved
E) when the gains from specialization of labor outweigh all other factors affecting labor productivity

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