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    Exam 15: Wage Rates in Competitive Labor Markets
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    When Diminishing Returns Are Present
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When Diminishing Returns Are Present

Question 79

Question 79

Multiple Choice

When diminishing returns are present,


A) total output increases at an increasing rate
B) total output begins to decrease
C) the marginal physical product curve begins to rise
D) total output increases at a decreasing rate
E) it's an indication that the firm is using too much labor

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