Decreasing Marginal Returns Occur in the Short Run as More

question 14

Multiple Choice

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

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