Increasing marginal returns always occurs when the
A) marginal product of an additional worker exceeds the marginal product of the previous worker.
B) average product of an additional worker exceeds the average product of the previous worker.
C) marginal product of an additional worker is less than the marginal product of the previous worker.
D) average product of an additional worker is less than the average product of the previous worker.
E) marginal product of an additional worker exceeds the average product of the previous worker.
A
You might also like to view...
If the government taxes producers that create pollution, the government's policy
A) allows the producers to pollute more by increasing their costs. B) results in less production because the producers' costs have risen. C) eliminates pollution entirely by shifting the supply curve leftward. D) allows the firms to pass along higher costs but doesn't cut pollution. E) forbids the firms from passing along higher costs.
Where there are spillover (or external) benefits from having a particular product in a society, the government can make the quantity of the product approach the socially optimal level by doing the following except:
A. Subsiding the buyers of the product B. Taxing the sellers of the product C. Subsidizing the sellers of the product D. Providing the product itself