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Exhibit 11-8

-In Exhibit 11-8, marginal revenue product begins to decline with the second worker hired.

Question

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Exhibit 11-8
 
-In Exhibit 11-8, marginal revenue product begins to decline with the second worker hired.

Quizplus · Accepted Answer

Marginal revenue product typically declines as more workers are hired due to the law of diminishing returns, which states that adding more of one factor of production, while holding others constant, will eventually yield lower per-unit returns.

NARRBEGIN: Exhibit 11-8-1 Exhibit 11-8