In the Short Run, If the Marginal Product of Labor

question 43

Multiple Choice

In the short run, if the marginal product of labor is decreasing, then:

• A) marginal cost must be increasing.
• B) the marginal revenue of the firm must be decreasing.
• C) average total cost must be increasing.
• D) average variable cost must be decreasing.
• E) average total cost must be decreasing. the marginal revenue product of labor must be increasing.

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Definitions:

Bureaucratic Structure

An organizational system characterized by a fixed hierarchy, specialization of labor, adherence to fixed rules, and a relationship of authority based on impersonal positions.

Hierarchy

An organization or structure where individuals or groups are arranged in a hierarchy based on their authority or status.

Divisions

The creation of distinct groups or categories within a society, often based on social, economic, or cultural differences.

Hawthorne Plant

Traditionally refers to a factory where the Hawthorne Studies were conducted, key in the development of management theory, emphasizing the social factors in workplace productivity.