When a Firm's Total-Product Curve Is Increasing at a Decreasing

question 55

Multiple Choice

When a firm's total-product curve is increasing at a decreasing rate

• A)average product is zero.
• B)marginal product is positive but declining.
• C)the marginal-product curve lies below the average-product curve.
• D)marginal product is negative and decreasing.
• E)average product is falling.

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Definitions:

Job-Based Pay

A compensation strategy that determines an employee's salary based primarily on the specific job or position they hold.

Competency-Based Pay

Pay based on an employee’s skill level, variety of skills possessed, or increased job knowledge

Hay Profile Method

A job evaluation technique using three factors—knowledge, mental activity, and accountability—to evaluate executive and managerial positions.

Market Pricing

The practice of setting salaries based on the prevailing wage rates for similar positions in the external labor market.