As a firm hires more workers, holding capital and other factors constant, the marginal physical product of labor declines because
A) there are diseconomies of scale.
B) less efficient workers are hired as the number of workers increase.
C) workers don't perform well in teams.
D) the amount of other inputs each worker has to work with declines as the number of workers increases.
D
You might also like to view...
Production costs for a given output will be minimized when the
a. budget line and the product indifference curve meet in the vertical axis. b. budget line crosses the product indifference curve. c. budget line begins to bend back on itself. d. product indifference curve and the budget line are tangent.
Which of the following restrictions implies that investment exceeds private saving for a closed economy?
a. The economy has no government. b. The economy's government is running a budget deficit. c. The economy's government is running a budget surplus. d. No restriction is necessary; investment and private saving are equal for all closed economies.