When a New Worker Hired Adds More to Total Output

question 121

Multiple Choice

When a new worker hired adds more to total output than the previous worker hired, production exhibits

• A) increasing marginal returns.
• B) increasing marginal costs.
• C) decreasing marginal returns.
• D) constant marginal costs.

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Definitions:

Misallocating

The improper or inefficient distribution or use of resources, often leading to suboptimal outcomes.

Multinational Corporations

Large companies that operate, produce, or sell goods and services in multiple countries beyond their home country.

Self-Reference Criterion

The tendency to use one's own cultural standards and experiences to judge and interpret the behavior and beliefs of people from other cultures.

Cultural Values

Fundamental beliefs or ideals shared by a group of people which dictate behaviors and provide a sense of identity and community.