If the Marginal Product of Labor Is Always Positive, the Total

question 86

Multiple Choice

If the marginal product of labor is always positive, the total revenue will grow with each additional worker. Firms do not continuously hire new workers because:

• A) there isn't enough room in the factory.
• B) there isn't an infinite number of workers.
• C) wages would have to increase.
• D) they stop when MRP = wage
• E) marginal revenue product will become negative.

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