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Scenario 13-4 a Firm Experiences Decreasing Marginal Product of Labour with the with the Addition

Question 40

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Scenario 13-4
A firm experiences decreasing marginal product of labour with the addition of each worker regardless of the current output level.
-Refer to Scenario 13-4.How will average fixed cost behave


A) It will always rise.
B) It will always fall.
C) It will be U-shaped, first falling and then rising.
D) It will remain constant.

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