As the Quantity of Labor Employed by a Firm Decreases

question 342

Multiple Choice

As the quantity of labor employed by a firm decreases, labor's ________ increases.

• A) marginal cost
• B) value of marginal product
• C) marginal revenue
• D) average cost

---

Definitions:

Mechanistic Design

An organizational structure characterized by a rigid hierarchy, high degrees of formalization and standardization, and a narrow span of control.

Narrow Spans of Control

A management structure where each manager oversees a small number of subordinates, leading to closer supervision and communication.

Specialised Tasks

Activities that require specific skills or knowledge, often focusing on a particular aspect of a job or process within an organization.

Functional Structures

Functional structures group together people with similar skills who perform similar tasks.