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If a Firm's Use of Labor Obeys the Law of Diminishing

Question 81

Multiple Choice

If a firm's use of labor obeys the law of diminishing returns, then:


A) it does not have enough time to hire or fire workers.
B) doubling the number of workers causes the firm's output to also double.
C) its marginal costs must be falling.
D) hiring additional workers adds less and less additional output.

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