Which of the following contributes to increasing marginal returns?
A) decreasing implicit costs
B) increasing explicit costs
C) specialization of labor
D) Both answers A and B are correct.
E) Both answers A and C are correct.

Question

Quizplus · Accepted Answer

The specialization of labor leads to an increase in marginal returns because workers become more efficient and productive in their specialized tasks. Decreasing implicit costs (A) or increasing explicit costs (B) do not directly affect marginal returns.

Which of the Following Contributes to Increasing Marginal Returns