Suppose That When One Additional Unit of Labour Is Hired

question 7

Multiple Choice

Suppose that when one additional unit of labour is hired, total product increases from 100 to 110 units of output per month. Marginal product must therefore be

• A) constant.
• B) positive.
• C) zero.
• D) decreasing.
• E) increasing.

---

Definitions:

Tort Law

The area of law that deals with civil wrongs, not arising from contracts, which can be redressed by awarding damages.

Restitution

The act of restoring something to its original state or compensating for loss or damage; in law, it usually refers to the compensation for harm or injury.

Incidental Damages

Expenses reasonably incurred by one party due to another party's breach of contract, such as costs to mitigate damages or to obtain substitute performance.

Arise Directly

Refers to issues or consequences that occur as a direct result of an action or event, with no intermediary steps.