Other Things Being Equal, When Average Productivity Falls

question 81

Multiple Choice

Other things being equal, when average productivity falls:

• A) average fixed cost must rise.
• B) marginal cost must rise.
• C) average total cost must rise.
• D) average variable cost must rise.

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Definitions:

Irresponsible Borrowings

Financial behavior that involves taking on debt in ways that are unsustainable or without a plan to manage repayment, leading to potential financial harm.

Shirking

The behavior of employees who avoid doing their work or put in less effort than is expected, which can negatively impact productivity.

Incentive Contracts

Agreements that provide additional benefits or compensation to parties who meet or exceed specific performance goals or targets.

Monitoring

The continuous observation and recording of activities or changes in a project or system over time.