When the Marginal Product of Labor Diminishes

question 25

Multiple Choice

When the marginal product of labor diminishes,

• A) average fixed cost rises.
• B) average variable cost is constant.
• C) marginal cost rises.
• D) average total cost must rise.
• E) total cost rises at a diminishing rate.

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Definitions:

Knowledge Trade

The exchange of expertise, information, and skills between individuals, organizations, or countries, often facilitated by technology or collaborative partnerships.

Consulting Firm

A company that provides expert advice to businesses in a specific field.

Management Problems

Issues or challenges faced by managers in directing organizational operations, often involving team performance, resource allocation, or strategic planning.

Knowledge Workers

Employees who primarily work with information or generate knowledge, often requiring a high level of education and expertise.