A Professional Service Such as a Law Firm Requires Highly

question 59

True/False

A professional service such as a law firm requires highly skilled labor, and the managerial focus is to maximize utilization of skilled resources.

---

Definitions:

Marginal Returns

The additional output gained by employing an additional unit of a resource.

Labor

The measure of the work done by human beings in the economy, often referred to in terms of hours worked or total workforce.

Capital

Refers to the financial assets or resources that businesses use to fund their operations and grow, including cash, equipment, and buildings.

Increasing Returns

A concept in economics where an increase in the scale of production leads to a greater than proportional increase in output.