Suppose That When One Additional Unit of Labour Is Hired

question 7

Multiple Choice

Suppose that when one additional unit of labour is hired, total product increases from 100 to 110 units of output per month. Marginal product must therefore be

• A) constant.
• B) positive.
• C) zero.
• D) decreasing.
• E) increasing.

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Definitions:

Functional Departmentalization

A method of organizing a company's structure based on specialized functions, such as marketing, finance, and operations.

Geographic

Relating to the physical features of the earth or the distribution of populations, often influencing environmental, economic, and social patterns.

Product

is anything offered to a market that can satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, information, and ideas.

Work Flow

Work flow refers to the sequence of processes through which a work project or task passes from initiation to completion.