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Which of the following best fits the economic concept of the law of diminishing marginal returns in production? Group of answer choices A pizza company
Which of the following best fits the economic concept of "the law of diminishing marginal returns" in production? Group of answer choices A pizza company needs to increase production so they hire three additional people. The first worker hired is skilled and hardworking, and increases output the most. The next two are lazy and have a difficult time understanding the job, so they produce less than the first new hire. More pizzas are needed to be produced, but the firm has only one industrial oven. Hiring more workers helps to get a bit more output but it begins to get crowded in the pizza kitchen which decreases productivity of additional workers. In the long run, a pizza company continues to increase output due to rising demand for their product, but additional expansion leads to increasing average costs due to bureacracy and difficulties managing all the pizza chain branches. More pizzas are needed to be produced, but the firm has only one industrial oven. The firm is able to purchase a second oven as well as more floor space and the firm hires more workers to increase output
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