Diminishing Marginal Returns to Labour Occur Because

question 50

Multiple Choice

Diminishing marginal returns to labour occur because

• A) workers become more efficient over time.
• B) after a while it is hard to find a good worker.
• C) larger companies are less efficient.
• D) the capital resources used by the firm are fixed in the short run.

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Definitions:

Pacinian Corpuscles

Pacinian corpuscles are nerve endings in the skin sensitive to pressure and vibration, playing a crucial role in the sensation of touch.

Ruffini Corpuscles

Specialized sensory receptors located in the skin and joints that detect stretch, deformation within joints, and warmth.

Prefrontal Cortex

The front part of the frontal lobes of the brain, involved in complex behaviors such as planning, decision making, and moderating social behavior.