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Denise Owns a Plant That Produces Watch Parts in Ohio

Question 92

Multiple Choice

Denise owns a plant that produces watch parts in Ohio.Denise noticed that when she hired the last worker,that worker's marginal product exceeded the marginal product of the previous worker.As a result,when the last worker was hired,Denise's average product of labor


A) decreased.
B) increased.
C) did not change.
D) perhaps changed, but there is not enough information to determine whether or not it did change.
E) equals the marginal product of labor.

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