Exhibit 22-8 -Exhibit 22-8 Shows How Output Varies with the Only Variable

question 83

Multiple Choice

Exhibit 22-8

-Exhibit 22-8 shows how output varies with the only variable input used in its production.The table indicates that diminishing marginal returns set in with the hiring of which unit of labor?

• A) first
• B) second
• C) third
• D) fourth
• E) fifth

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Definitions:

Collude

To collude means to cooperate or conspire in secret, especially with the intention to cheat or deceive others, such as companies agreeing to fix prices.

Total Revenue

The total amount of money generated by a company from sales of its products or services before any expenses are subtracted.

Price Effect

The impact on the market when there is a change in the price of goods or services, influencing the supply and demand.

Output Effect

The change in total revenue resulting from the production of additional units of output in a competitive market.