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Take the setting of a typical McDonalds restaurant and tell the story of why increasing returns might occur from the first to the fourth employee. Then speculate on why diminishing returns will likely set in. Finally, what conditions could account for an eventual zero or even negative marginal product? describe in words why McDonalds will not likely stop hiring at the point of diminishing returns.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M950932

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