The Following Data Show the Total Output for a Firm

question 110

Multiple Choice

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100.
TABLE 7-4
-Refer to Table 7-4.Diminishing marginal productivity of labour is first observed when the firm changes the amount of labour hired from

• A)0 to 1 unit.
• B)1 to 2 units.
• C)2 to 3 units.
• D)3 to 4 units.
• E)4 to 5 units.

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Definitions:

Meat Powder

A substance used by Ivan Pavlov in his classical conditioning experiments as an unconditioned stimulus to elicit an unconditioned salivation response in dogs.

Salivation

The production and release of saliva in the mouth, often in response to the sight, smell, or taste of food.

Classical Conditioning

An educational method where an indifferent stimulus is linked with a significant stimulus, thereby gaining the ability to provoke comparable reactions.

Automaker

A company that manufactures and sells automobiles, playing a key role in the automotive industry.