Decreasing marginal returns occur in the short run as more labor is hired to work in fixed sized plant because A) the entrepreneur does not know how to manage more workers. B) adding more workers overcrowds the factory's buildings and machinery C) less efficient and less productive workers have to be hired D) each worker will produce more than the worker previously hired.

Decreasing marginal returns occur in the short run as more labor is hired to work in fixed sized plant because A) the entrepreneur does not know how to manage more workers. B) adding more workers overcrowds the factory's buildings and machinery C) less efficient and less productive workers have to be hired D) each worker will produce more than the worker previously hired.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter21: Getting Employees To Work In The Firm’s Best Interests

Section: Chapter Questions

Problem 21.6IP

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