As a Firm Hires More Labor in the Short Run

question 254

Multiple Choice

As a firm hires more labor in the short run, the

• A)level of total product stays constant.
• B)output per worker rises.
• C)extra output of an additional worker may rise at first, but eventually must fall.
• D)costs of production are increasing at a fixed rate per unit of output.

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Definitions:

Expressed Agency

A legal relationship where an agent is explicitly granted the authority by the principal to act on their behalf.

Apparent Agency

The legal doctrine that allows a third party to hold a principal liable for the acts of an agent, where the principal has given the appearance of agency.

Ratification

The process by which someone gives formal consent or approval to something, often a legal or contractual agreement.

Faithless Servant Doctrine

A legal principle that allows employers to recover compensation paid to an employee who has acted disloyally or in breach of contract.