If a Firm Is Experiencing Diminishing Returns to Labor

question 1

Multiple Choice

If a firm is experiencing diminishing returns to labor,

• A)marginal product of labor must be decreasing.
• B)it must be producing in the long run.
• C)marginal cost must be decreasing.
• D)the firm must be experiencing diseconomies of scale.
• E)the firm is apparently hiring less-qualified units of labor.

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Definitions:

Unethical

Acting in ways that violate moral principles and standards of conduct.

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Careful Observation

The act of meticulously watching and noting details in order to gather data or understand a phenomenon.