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.

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Definitions:

Grow the Dividend

A strategy aimed at gradually increasing the dividend payout to shareholders over time, demonstrating financial health and confidence in future earnings.

Current Price

The current trading price of a security, commodity, or index in the market.

Constant Rate

A fixed percentage rate applied consistently over a period of time, often used in the context of growth rates, discount rates, or interest rates.

Dividend Per Share

The amount of dividend that a company pays out to its shareholders for each share owned.