"When Workers Already Have a Large Quantity of Capital to Use

question 152

Multiple Choice

"When workers already have a large quantity of capital to use in producing goods and services,giving them an additional unit of capital increases their productivity only slightly." This statement

• A)represents the traditional view of the production process.
• B)is an assertion that capital is subject to diminishing returns.
• C)is made under the assumption that the quantities of human capital,natural resources,and technology are being held constant.
• D)All of the above are correct.

---

Definitions:

Costs Associated

Expenses that are linked to a specific product, activity, or department within a business.

Special Order

An order for a product or service that is outside of the company's regular operations or production schedule, often requiring special pricing or conditions.

Excess Capacity

Refers to a situation where a company has more production capability available than is necessary to meet demand, often resulting in unused resources or facilities.

Financial Advantage

A benefit that helps to improve a company's financial position, which can include lower costs, access to new markets, or additional revenues.