In the short run, why does a production function eventually display diminishing returns to labor?
A) As a firm hires more workers the skills and the work ethic of the additional workers will eventually decline.
B) The opportunity cost of hiring additional workers must eventually rise.
C) As the number of workers increases eventually the gains from the division of labor and specialization are used up.
D) As the number of workers increases it becomes difficult to monitor them.
C
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If an increase in the price of a product from $100 to $200 per unit leads to a decrease in the quantity demanded from 10 to 8 units, then demand is
a. elastic b. inelastic c. unit elastic d. 0 e. inferior
Which of the following goods would be most likely to be produced by a monopoly?
a. Lotso-Sugar brand cereal b. Pepsi c. margarine d. electricity e. Ford automobiles