When a Production Function Exhibits a Marginal Product of Labour

question 133

Multiple Choice

When a production function exhibits a marginal product of labour that is diminishing (but positive) :

• A)output declines as more workers are employed
• B)the firm should never increase its employment
• C)output increases, but at a decreasing rate as more workers are employed
• D)the firm cannot be maximising profit

---

Definitions:

Cognitive Resources

The mental abilities and capacities that individuals can utilize for thinking, reasoning, and problem-solving.

Romantic Relationship

A personal and intimate relationship between individuals characterized by love, commitment, and emotional bonding.

Memory

The mental faculty by which information is encoded, stored, and retrieved when needed, allowing for learning and retention over time.

Reconstructive Process

The method by which memories are not merely retrieved but reconstructed, often influenced by various factors like biases and new information.