As a Firm Hires More Labor in the Short Run

question 53

Multiple Choice

As a firm hires more labor 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.

---

Definitions:

Capital Balances

Capital balances refer to the amount of money equity holders have invested in a company, often reflected in the equity section of the balance sheet.

Net Loss

The amount by which a company's expenses exceed its revenues over a specific period, indicating a negative financial performance.

Share

A unit of ownership interest in a corporation or financial asset, representing an equal proportion of the company's capital.

Salary

Regular payment from an employer to an employee, often expressed on an annual basis.