Suppose That for a Given Firm, the Increase in Output

question 135

Multiple Choice

Suppose that for a given firm, the increase in output resulting from the last worker hired is less than the increase in output of the previous worker hired. This is an example of

• A) diminishing returns.
• B) constant returns.
• C) increasing return.
• D) capital deepening.

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Definitions:

Declines

Decreases in value, performance, or level over a period of time.

Capital Gain Yield

The price appreciation component of the total return on an investment, excluding any dividends or interest earned.

Income Yield

The income generated by an investment, usually expressed as a percentage of the investment's cost.

Total Return

The overall return on an investment, including the change in value plus any dividends or interest, over a specific period.