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Labor Costs Usually Increase at an Increasing Rate at High

Question 30

Multiple Choice

Labor costs usually increase at an increasing rate at high levels of output for all of the following reasons except


A) labor productivity begins to decline
B) the marginal gains from specialization decrease
C) the price of labor rises as more workers are hired
D) the workers hired later may not be as qualified
E) fuel costs begin to increase as more output is produced

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