The Principle of Diminishing Returns Does Not Apply to Labor

question 142

Multiple Choice

The principle of diminishing returns does not apply to labor when all inputs are allowed to vary because:

• A) a firm can fire inefficient workers.
• B) eventually the marginal product of labor will begin to increase again.
• C) a firm can build an additional production facility so each worker's share of the facility doesn't necessarily decrease.
• D) None of the above, diminishing returns always apply.

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Definitions:

Deontological Approach

A philosophical stance emphasizing duty, where the morality of an action is based on adherence to rules or duties rather than the consequences.

Immanuel Kant

An 18th-century German philosopher known for his work in epistemology, ethics, and aesthetics, particularly for his philosophy of the categorical imperative.

Ethics

The study of moral principles that govern an individual's behavior or conducting of an activity.

Social Egalitarian

Advocating for social equality and a belief in the equitable distribution of wealth and opportunities among all people.