Increasing Marginal Returns to Labour Might Occur at Low Levels

question 34

Multiple Choice

Increasing marginal returns to labour might occur at low levels of labour input because of

• A) increasing average costs.
• B) decreasing use of machinery and increasing use of technology.
• C) differing factor proportions.
• D) increasing specialisation of tasks.

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Definitions:

Valet Parking

A service where an attendant parks and retrieves vehicles for guests at a venue or establishment.

Gross Negligence

An extreme lack of care or failure to act that demonstrates a disregard for the safety or rights of others, potentially leading to legal liability.

Bailment

The transfer of a chattel by the owner to another for some purpose, with the chattel to be later returned or dealt with in accordance with the owner’s instructions.

Reasonable Care

The standard of care that a reasonably prudent person would observe under a given set of circumstances.