The Curvature of the Production Function Shows That as Employment

question 211

Multiple Choice

The curvature of the production function shows that as employment increases, the productivity of labor

• A) decreases and becomes negative.
• B) remains constant.
• C) remains positive but decreases.
• D) remains positive and increases.

---

Definitions:

Rights Offering

A method by which a company raises additional capital by giving existing shareholders the right to buy new shares at a discount.

Subscription Price

The fee that investors pay when subscribing to a new issue of securities.

Market Price

This refers to the current price at which an asset or service can be bought or sold in the market.