Solved

The Value of Labor Falls as Additional Units of Labor

Question 12

Multiple Choice

The value of labor falls as additional units of labor are hired because of:


A) declining profits and increasing costs.
B) decreasing marginal productivity and increasing costs.
C) declining profits and the need to lower product price to sell additional units.
D) decreasing marginal productivity and, in most cases, the need to lower product price to sell additional units.

Correct Answer:

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