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Decreasing Marginal Returns Occur in the Short Run as More

Question 125

Multiple Choice

Decreasing marginal returns occur in the short run as more labor is hired to work in a fixed sized plant because


A) less efficient and less productive workers are hired.
B) adding more workers exhausts the possible gains from specialization.
C) the entrepreneur does not know how to manage more workers.
D) each worker will produce more than the worker previously hired.
E) the plant becomes less specialized.

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