Consider the Following Statements When Answering This Question: I

question 18

Multiple Choice

Consider the following statements when answering this question: I. If the marginal product of labor falls whenever more labor is used, and labor is the only factor of production used by the firm, than at every output level the firm's short-run average variable cost exceeds marginal cost.
II) If labor obeys the law of diminishing returns, and is the only factor of production used by the firm, then at every output level short-run average variable costs exceed marginal costs.

• A) I is true, and II is false.
• B) I is false, and II is true.
• C) I and II are both true.
• D) I and II are both false.

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Definitions:

Distributive Communication

Communication that focuses on dividing or distributing resources and benefits among parties in a negotiation.

Negotiation Outcomes

The results or consequences that arise from the process of negotiation, which can include agreements, resolutions, or understandings.

Symbolic Form

The expression or representation of ideas or concepts through symbols or symbolic actions.

Self-defeating Thought

A negative, often irrational belief about oneself that undermines one’s success or happiness by promoting pessimism, self-doubt, or self-sabotage.