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Which of the Following Is True If Production Displays Increasing

Question 254

Multiple Choice

Which of the following is true if production displays increasing marginal returns?


A) total product rises by a constant amount throughout.
B) each new worker hired adds more to output than previous hires.
C) the firm must be adding new capital to keep boosting productivity.
D) total product reaches a maximum sooner than if production displayed decreasing returns.

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