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Labor Productivity Increases Over Time as Individuals Understand and Use

Question 99

Multiple Choice

Labor productivity increases over time as individuals understand and use the most efficient ways to perform particular tasks.Equally important,in new production facilities,management typically learns how to manage the new operation more efficiently over time.This demonstrates how production costs eventually decline due to increasing labor productivity and management efficiency because of:


A) diminishing returns.
B) economies of scale.
C) learning effects.
D) task segmentation.

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