In the short run, why does a production function eventually display diminishing returns to labor?
A) As the number of workers increases it becomes difficult to monitor them.
B) As a firm hires more workers the skills and the work ethic of the additional workers will eventually decline.
C) As the number of workers increases eventually the gains from the division of labor and specialization are used up.
D) The opportunity cost of hiring additional workers must eventually rise.
Answer: C
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When a nation imports a good or service, the nation's consumer surplus ________, its producer surplus ________, and its total surplus ________
A) increases; decreases; increases B) increases; decreases; decreases C) increases; increases; increases D) decreases; decreases; decreases E) decreases; decreases; increases
Public choice is concerned with
A) relative prices. B) government decision making. C) marketing techniques. D) consumer surveying.
Which of the following enhances the ability of waste companies to collude?
A. High interest rates B. Differentiated nature of products C. Large number of firms D. Decals on waste receptacles
Increased labor demand will result in
A) lower wages. B) more employment benefits. C) higher wages. D) no change in wages.