If the Marginal Product of Labor for a Firm Decreases

question 38

Multiple Choice

If the marginal product of labor for a firm decreases as more workers are hired,we know that

• A) all workers are paid the same wage.
• B) the marginal cost of producing output is decreasing.
• C) the gains from specialization are exhausted.
• D) the marginal cost of producing output is constant.
• E) there are still gains from specialization left to be exploited.

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