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Question
As a firm hires more workers, holding the amounts of capital and other inputs constant,
A) output increases at a decreasing rate.
B) output increases at a constant rate.
C) output increases for a while and then decreases.
D) output increases, but we canʹt be certain whether output increases at an increasing or a decreasing rate.
Answer
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Related questions
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Refer to the above figure. Other things being equal, when the government imposes a price floor at P2, then we would expectA) the quantity demanded is Q 2.B) a surplus will occur.C) price to decline until an equilibrium is achieved at P0.D) consumers to bid against each other for goods and force the price even higher.
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