Author Question: As Product Co adds the first four workers to its production process in the short run, its output ... (Read 15 times)

RYAN BANYAN · **on:** Jun 30, 2018

As Product Co adds the first four workers to its production process in the short run, its output rises from 0 to 12 to 25 to 35 to 43 . Addition of the fifth worker will most likely lead to an output rate
a. greater than 51
b. equal to 51
c. less than 51
d. greater than 51 if the firm experiences diseconomies of scale
e. none of the above

Question 2

Increasing marginal returns are generally the result of
a. diseconomies of scale
b. increasing costs
c. specialization and division of labor
d. labor unions
e. technology