After Hiring Three New Employees, a Manager Sees That Total

question 52

Multiple Choice

After hiring three new employees, a manager sees that total output increases. If the manager hires two additional employees and discovers total output has fallen, the result is due to

• A) diseconomies of scale.
• B) a poor hiring procedure.
• C) diminishing marginal returns.
• D) the lack of skills of newest employees-the best workers are hired first.
• E) economies of scale.