One existing government program that works much like a negative income tax is Medicaid

One reason why, in the short run, the marginal product of labor might increase initially as more workers are hired is that

A) beyond some point, a firm has hired too many workers. B) specialization allows a worker to focus on one task, thereby increasing her proficiency at that task. C) the best workers are hired first and later hires are not as skillful. D) the first workers hired get to use the best equipment.

Over the long run, monopolies can earn

A) economic profit. B) normal profit only. C) accounting profit only. D) no economic profit.