When Does Diminishing Marginal Product of Labour Occur

question 48

Multiple Choice

When does diminishing marginal product of labour occur?

• A) when adding another unit of labour increases output by a larger margin than the last unit of labour employed
• B) when the average product of labour begins to rise
• C) when all inputs are varied simultaneously in the same proportion
• D) when adding another unit of labour increases output, but not by as large a margin as the last unit of labour employed

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Definitions:

Trial Balance

A bookkeeping worksheet where the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Trial Balance

A ledger balance compilation sheet in bookkeeping, organizing debit and credit balances into columns that have equal totals.

Financial Statement Order

The sequence in which financial reports, such as the balance sheet, income statement, and cash flow statement, are prepared and presented.

Recording Process

The systematic method of capturing all changes in financial information in a set period, typically through the use of journals and ledgers in accounting.