When the Marginal Product of Labor Diminishes

question 25

Multiple Choice

When the marginal product of labor diminishes,

• A) average fixed cost rises.
• B) average variable cost is constant.
• C) marginal cost rises.
• D) average total cost must rise.
• E) total cost rises at a diminishing rate.

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Definitions:

Income

Money received on a regular basis from work, property, or investments.

Baristas Union

An organization formed by baristas aiming to protect their rights and advocate for better working conditions and pay.

National Labor Relations Board

An independent federal agency tasked with enforcing US labor law in relation to collective bargaining and unfair labor practices.

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