As a Result of Severe Flooding,a Farmer Loses Half of His

question 33

Multiple Choice

As a result of severe flooding,a farmer loses half of his productive farmland.If the property of diminishing returns applies to all factors of production,he should expect to see

• A) an increase in the marginal productivity of his remaining land and an increase in the marginal productivity of his labor.
• B) an increase in the marginal productivity of his remaining land and a decrease in the marginal productivity of his labor.
• C) a decrease in the marginal productivity of his remaining land and an increase in the marginal productivity of his labor.
• D) a decrease in the marginal productivity of his remaining land and a decrease in the marginal productivity of his labor.

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Definitions:

Reasonable Notice

The adequate time or warning given in advance of an event or action, such as termination of employment, required by law or contract.

Damages Payable

Monetary compensation that a party is legally obligated to pay as a result of causing harm or loss to another party.

Injunction

A court order requiring an individual or entity to do or to refrain from doing a specific act, used as a remedy in many types of disputes.

Minimum Wage

The lowest legal hourly pay that employers are allowed to pay workers, established to ensure a basic standard of living for employees.