Paper Pushers Inc. hires workers in a competitive labor market. Apart from labor, the company has no other variable inputs. The company's hourly output varies with the number of workers hired, as shown in the table.
The VMP of the sixth worker is ________ than the VMP of the fourth worker because ________.
A) less; the firm experiences economies of scale
B) more; of the law of increasing returns
C) less; of the law of diminishing returns
D) more; workers can specialize and exploit their comparative advantage
Correct Answer:
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