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The Marginal Product of Capital May Be Decreasing Because

Question 1

Multiple Choice

The marginal product of capital may be decreasing because


A) capital depreciates over time
B) each additional machine has fewer workers to operate it
C) new machines embody a different technology than old machines
D) at some point the economy reaches full capacity, beyond which output cannot expand
E) machines are often firm-specific, with little resale value to another firm

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