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:

Organizational Change

The process through which a company or institution changes its structure, strategies, operational methods, or culture to effect change within the organization and respond to internal and external pressures.

Reactive Change

Change that occurs in response to external pressures or unforeseen situations, as opposed to being planned in advance.

Planned Change

The deliberate effort to alter an organization or process in a controlled and structured manner.

Transformational Change

Refers to a comprehensive, radical shift in the operations, culture, or structure of an organization, aiming for improvements and adaptation to new market conditions or technological advances.