Exhibit 6-1 Production of Pizza Data

Exhibit 6-1 Production of pizza data

-Exhibit 6-1 shows the change in the short-run production of pizzas as more workers are hired.The table shows the marginal product of the labor input is decreasing with the hiring of the third worker.A possible reason for this diminishing marginal product is:

A) decreased wages.
B) increases in plant size.
C) decreases in fixed cost.
D) increased division of labor as additional workers are hired.
E) decreases in labor productivity.

Correct Answer:

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