For a Short-Run Production Function in Which Output Is Determined

question 54

Multiple Choice

For a short-run production function in which output is determined by the number of workers utilized (capital stock held constant) , which of the following is FALSE?

• A) In general, when there are few workers the marginal product of labor will be increasing.
• B) When the marginal product of labor is negative, total product is falling.
• C) To determine the marginal product of labor, the capital stock must be held constant.
• D) When diminishing returns set in, adding one more worker decreases output.
• E) none of the above

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