When a Production Function Exhibits a Diminishing, but Positive, Marginal

question 51

Multiple Choice

When a production function exhibits a diminishing, but positive, marginal product of labor,

• A)output increases, but at an increasing rate, as more workers are employed.
• B)output increases, but at a decreasing rate, as more workers are employed.
• C)output declines as more workers are employed.
• D)the effects on marginal product are ambiguous.

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Definitions:

Urethra

A tube that connects the urinary bladder to the urinary orifice for the removal of fluids from the body.

Bladder

An organ that stores urine produced by the kidneys before it is excreted from the body.

Uric Acid

Nitrogen-containing waste compound derived from ammonia; it can be excreted as crystals.

Ammonia

A colorless gas with a pungent smell, consisting of nitrogen and hydrogen (NH3), used in various industrial processes.