When an Additional Unit of a Variable Factor of Production

question 209

Multiple Choice

When an additional unit of a variable factor of production adds less to total product than the previous unit, the firm must be experiencing:

• A) increasing returns.
• B) diminishing marginal returns.
• C) diminishing average returns.
• D) both B and C.

---

Definitions:

Empowerment

The delegation of power or authority to employees and team members in an organization, enabling them to take initiative and make decisions.

Managing Antecedents

The process of identifying and addressing the factors that precede and influence behaviors within an organizational context.

Barriers

Obstacles or impediments that restrict or limit the process of progress or movement, often encountered in the context of communication, trade, and innovation.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior.