Suppose That a Firm's Capital Is Fixed and One More

question 53

Multiple Choice

Suppose that a firm's capital is fixed and one more unit of labour is hired,thereby increasing the firm's total output.Which of the following statements can be correct? 1.Marginal cost would remain constant.
2.Marginal cost would increase.
3.Marginal cost would decrease.

• A)1 only
• B)2 only
• C)3 only
• D)Any of 1,2,and 3 is possible.
• E)None are possible.

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Definitions:

Osmosis

The movement of water molecules through a semipermeable membrane from a less concentrated solution to a more concentrated one.

One-Dimensional Fluids

A theoretical concept referring to fluids confined in a space that allows movement and interaction in only one dimension.

Glycoproteins

Proteins that have carbohydrate groups attached to the polypeptide chain, playing diverse roles in biological recognition processes.

Cholesterol

A waxy type of lipid, essential for the formation of cell membranes and synthesis of hormones, found in the bloodstream and cells.