If production displays increasing marginal returns, then
A) the firm must be adding new capital to keep boosting productivity.
B) each new worker hired adds more to output than previous hires.
C) total product reaches a maximum sooner than if production displayed decreasing returns.
D) total product rises by a constant amount throughout.
Question 2
Monopolistic competition differs from oligopoly in that in monopolistic competition firms act independently while in oligopoly firms act interdependently.
Indicate whether the statement is true or false
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