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If the Marginal Physical Product of Labor Increases with the Addition

Question 57

Multiple Choice

If the marginal physical product of labor increases with the addition of new workers, it's because


A) labor specialization raises labor productivity
B) the new workers are hired at lower wage rates
C) the law of diminishing returns applies to new workers
D) the supply curve of labor is upward sloping
E) of the low productivity of capital

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