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:

Average Amount

The sum of values divided by the number of values, commonly known as the mean.

Alternative Hypothesis

The alternative hypothesis is a statement in statistics that contradicts the null hypothesis and indicates that there is a significant difference between specified populations.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect in a given experiment or study, serving as a starting point for testing.

SRS

An abbreviation for Simple Random Sample, a sampling method where every member of the population has an equal chance of being selected.