When the 7th Worker Is Hired,output Increases from 100 Units

question 44

Multiple Choice

When the 7th worker is hired,output increases from 100 units per week to 110 units per week.When the 8th worker is hired,output increases from 110 units to 118 units.This is an example of

• A)diminishing marginal returns.
• B)diminishing marginal cost.
• C)decreasing returns to scale.
• D)labour-intensive production.
• E)increasing returns to scale.

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Definitions:

Diet Soda

is a low-calorie or zero-calorie carbonated beverage made with artificial sweeteners instead of sugar.

Substitution Effect

The change in consumption patterns due to a change in price, leading consumers to substitute one product for another.

Real Balance Effect

An economic theory suggesting that inflation or deflation changes individuals' purchasing power, affecting their real income and consumption patterns.

Marginal Utility

The additional satisfaction or utility gained by consuming one more unit of a good or service.