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When a Rug Factory Increases the Labor It Hires from 10

Question 21

Multiple Choice

When a rug factory increases the labor it hires from 10 to 12 workers, the number of rugs produced increases from 16 to 20. We know then that the marginal physical product oflabor is


A) increasing
B) negative
C) impossible to compute
D) 4 rugs
E) 2 rugs

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