Decreasing Marginal Returns Occur in the Short Run as More

question 14

Multiple Choice

Decreasing marginal returns occur in the short run as more labour is hired to work in a fixed sized plant because

• A) the plant becomes less specialised.
• B) adding more workers exhausts the possible gains from specialisation.
• C) the entrepreneur does not know how to manage more workers.
• D) less efficient and less productive workers are hired.
• E) each worker will produce more than the worker previously hired.

---

Definitions:

Ethical Decisions

Choices made based on moral principles and values, considering the impact on all stakeholders involved and aiming for fairness and integrity.

Compassionate Choice

A principle or action taken based on understanding and empathy towards the needs and suffering of others.

Ethics

The moral principles that govern a person's behavior or the conducting of an activity, often underpinning professional standards and practices.

Utilitarianism

An ethical theory that posits the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.