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Diminishing Returns to Labor Means

Question 45

Multiple Choice

Diminishing returns to labor means:


A) that the marginal product of labor declines as the amount of labor used in a sector increases.
B) that the marginal product of labor declines as the amount of capital combined with labor in a sector increases.
C) that the marginal product of labor declines as the amount of land combined with labor in a sector increases.
D) that the marginal product of capital declines as the amount of labor used in a sector increases.

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