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One Reason That Variable Factors of Production Tend to Show

Question 44

Multiple Choice

One reason that variable factors of production tend to show diminishing returns in the short run is that:


A) too much capital equipment is idle.
B) there are more and more workers using a fixed amount of productive resources.
C) the firm has become too large to effectively manage workers.
D) the cost of hiring additional workers increases as firms seek to hire more.

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