As more workers are hired, the marginal physical product of labor eventually declines because
A. of diseconomies of scale.
B. less efficient workers are hired as the number of workers increases.
C. the amount of capital each worker has to work with declines as the number of workers increases.
D. workers do not work well together when the number of workers increases.
Answer: C
You might also like to view...
The value of all final goods and services produced during a given time period measures a nation's
A) net exports. B) net national product. C) consumer price index. D) gross domestic product.
A budget constraint is a straight line because:
A) the tastes and preferences of the consumer change along the constraint. B) a consumer faces a fixed price of both goods that do not change with changes in consumption. C) the opportunity cost of buying each of the goods changes along the constraint. D) a consumer has a limited money income.
Goods that can be bought in any quantity desired are called
A) divisible goods. B) indivisible goods. C) invisible goods. D) inferior goods.
A perfectly competitive firm's short-run break-even output occurs
A) at the minimum point of its average variable cost curve. B) at the minimum point of its average total cost curve. C) at the minimum point of its marginal cost curve. D) at the intersection of its total cost curve and its marginal revenue curve.