A firm faces diminishing marginal returns when every additional worker adds to total output at an increasing rate.
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Q245: Hiring additional workers always causes output to
Q246: Average product is defined as the total
Q247: Average product of labor is total output
Q248: A worker's marginal product is the increase
Q249: If hiring Joey causes average product to
Q251: Firms should not hire another worker if
Q252: Diminishing returns cannot occur if additional workers
Q253: Diminishing returns arise because of fixed resources
Q254: Fixed costs include wages for current employees.
Q255: If producers experience an increase in the
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