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Assume That a Firm Hires an Additional Employee

Question 73

Multiple Choice

Assume that a firm hires an additional employee.If the marginal product for that employee is greater than for the previous employee hired,it must be because


A) the marginal product of labor is diminishing.
B) all workers are paid the same wage.
C) the workers all perform the exact same set of tasks.
D) there are gains from specialization.
E) all workers are not paid the same wage.

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