Decreasing marginal returns occur in the short run as more labor is hired to work in a fixed sized plant because
A. adding more workers exhausts the possible gains from specialization.
B. less efficient and less productive workers are hired.
C. each worker will produce more than the worker previously hired.
D. the plant becomes less specialized.
E. the entrepreneur does not know how to manage more workers.
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Home » Business » Decreasing marginal returns occur in the short run as more labor is hired to work in a fixed sized plant because A. adding more workers exhausts the possible gains from specialization. B. less efficient and less productive workers are hired. C.