Suppose That a Firm's Capital Is Fixed and One More

question 53

Multiple Choice

Suppose that a firm's capital is fixed and one more unit of labour is hired,thereby increasing the firm's total output.Which of the following statements can be correct? 1.Marginal cost would remain constant.
2.Marginal cost would increase.
3.Marginal cost would decrease.

• A)1 only
• B)2 only
• C)3 only
• D)Any of 1,2,and 3 is possible.
• E)None are possible.

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Definitions:

REM Rebound

The phenomenon of increased REM (Rapid Eye Movement) sleep, which occurs after periods of REM sleep deprivation, often resulting in more vivid dreams.

Depression Vulnerable

A state or condition where an individual is more susceptible to developing depressive disorders due to genetic, environmental, or psychological factors.

Hypnagogic Sensations

Experiences occurring at the threshold of sleep, often including visual, auditory, or bodily sensations such as falling or hearing one's name called.

N1 Sleep

The initial stage of sleep that occurs between wakefulness and deeper sleep, characterized by light sleep and the ease of being awakened.