Assume Labour Is the Only Factor of Production in a Competitive

question 69

Multiple Choice

Assume labour is the only factor of production in a competitive product market.If there are increasing returns to scale then:

• A)marginal product of labour is constant
• B)marginal product of labour is decreasing
• C)marginal product of labour is increasing
• D)we cannot say without more information

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Definitions:

Level of Significance

The threshold below which a p-value is considered to indicate a statistically significant result, typically set at 0.05 or 5%.

Degrees of Freedom

Represents the number of independent values or quantities which can be assigned to a statistical distribution without violating any constraining conditions.

Test Statistic

A standardized value used in statistical hypothesis testing to determine whether to reject the null hypothesis.

Uniformly Distributed

A distribution that has constant probability across the entire range of possible outcomes.