The Chart Below Describes the Short Run Productivity of Workers

question 89

Multiple Choice

The chart below describes the short run productivity of workers at Paper Pushers Inc. ,an office support firm that has no variable costs other than labor. $$\begin{array} { | l | l | } \hline \text { Workers } & \text { Pages per Hour } \\\hline 1 & 40 \\\hline 2 & 75 \\\hline 3 & 105 \\\hline 4 & 125 \\\hline 5 & 140 \\\hline 6 & 150 \\\hline 7 & 155 \\\hline\end{array}$$
Because productivity at Paper Pushers displays ______ the firm should ______

• A)diminishing marginal productivity;hire as few workers as possible.
• B)constant marginal productivity;hire as many workers as it can.
• C)diminishing marginal productivity;hire workers only if VMP is greater than or equal to the product price.
• D)diminishing marginal productivity;hire workers only if VMP is greater than or equal to the workers' wage.

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