If the Law of Diminishing Returns Applies to Labor Then

question 108

Multiple Choice

If the law of diminishing returns applies to labor then:

• A) the marginal product of labor must eventually become negative.
• B) the average product of labor must eventually become negative.
• C) the marginal product of labor must rise and then fall as employment rises.
• D) the average product of labor must rise and then fall as employment increases.
• E) after some level of employment, the marginal product of labor must fall.

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Definitions:

Semiprogrammed

Decisions that have some elements of uncertainty and require a mix of established procedures and creative solutions.

Nonlinear

Nonlinear describes processes or relationships that do not follow a straight line or proportionality, showing complex dependencies.

Contingent Decisions

Decisions made based on the specific conditions or circumstances prevailing at the time, rather than following a strict policy or guideline.

Decision Rules

Guidelines or criteria used to choose among alternatives in the decision-making process.