If a Firm Is Experiencing Diminishing Marginal Returns to Labor,then

question 122

Multiple Choice

If a firm is experiencing diminishing marginal returns to labor,then

• A)total output must be decreasing
• B)total output rises more slowly as additional workers are added
• C)the firm must decrease the amount of labor it hires
• D)total output per worker must be rising
• E)the firm must be operating in the long run

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Definitions:

Productive Efficiency

A situation where a good or service is produced at the lowest possible cost.

Technological Advance

Technological advance refers to the progression and innovation in technology that often leads to improved efficiency, production capabilities, and new product developments.

Preferred Mix

The optimal combination of goods and services an economy should produce, taking into account consumer preferences, resource availability, and socio-economic objectives.

Venture Capital

Financing provided by investors to startup companies and small businesses with perceived long-term growth potential.