-Exhibit H-1 Shows the Change in the Short-Run Production of Pizzas

Multiple Choice

-Exhibit H-1 shows the change in the short-run production of pizzas as more workers are hired. The table shows the marginal product of the labor input is decreasing with the hiring of the third worker. A possible reason for this diminishing marginal product is

A) decreases in wages
B) increases in plant size
C) decreases in fixed cost
D) increases in division of labor as additional workers are hired
E) decreases in labor productivity