As a Firm Hires More Labour in the Short Run

question 110

Multiple Choice

As a firm hires more labour in the short run, the

• A) level of total product stays constant.
• B) output per worker rises.
• C) extra output of another worker may rise at first, but eventually must fall.
• D) costs of production are increasing at a fixed rate per unit of output.

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Definitions:

Stabilize Supply

Actions or strategies implemented to ensure a consistent and reliable supply of goods, preventing shortages or excessive inventory.

Interest Revenue

Income that is earned from investments in interest-bearing accounts like savings accounts, bonds, or loans.

Cash

Money in the form of coins or banknotes, especially that issued by a government to be used in the exchange of goods and services.

Interest Receivable

The amount of interest earned but not yet received by the lender or investor.