In the Area of Diminishing Returns in Production

question 24

Multiple Choice

In the area of diminishing returns in production:

• A) Total output declines with each additional unit of labour input.
• B) The marginal product of labour first increases, then reaches a maximum level, and then decreases.
• C) The marginal product of labour first decreases, then reaches a minimum level, and then increases.
• D) The marginal product of labour increases at a decreasing rate.
• E) The marginal product of labour decreases eventually.

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Definitions:

Foreign Corrupt Practices Act

A U.S. law that prohibits companies and their supervisors from bribing foreign officials to obtain or retain business.

American Company

A corporation or business entity that is registered, operates, or has its principal place of business in the United States.

Anti-Dumping Statute

Laws designed to protect domestic industries from foreign companies selling products at a price lower than their market value or cost of production.

Normal Value

A term used in international trade, referring to the price at which goods are sold in the domestic market of the exporting country.