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

Understand the equity theory, including inputs, outcomes, and perceptions of fairness in organizational contexts.

Recognize the significance of job characteristics and rewards in determining job satisfaction and pay disparities.

Appreciate the role of communication in influencing perceptions of fairness and satisfaction in the workplace.

Understand the psychological and physical implications of job demands, especially those requiring suppression of emotions.

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Definitions:

Backward Bending

Refers to the backward bending supply curve of labor, indicating that higher wages can lead to a decrease in labor supply beyond a certain point.

Corinthian Column

A classical column style characterized by its ornate capital decorated with acanthus leaves, used in Greek and Roman architecture.

Choragic Monument

An architectural structure built in ancient Greece to commemorate a victory in a choragic contest, a musical or dramatic performance.

Tholos

A tholos is a type of ancient Greek and Roman building characterized by a circular shape, often with a conical or dome-shaped roof.