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.

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Definitions:

Dependability

The quality of being reliable and trustworthy, often evaluated in the context of individuals' consistency in actions and behaviors.

Humor

The quality of being amusing or entertaining, often resulting from a perception of incongruity or a playful interpretation of a situation.

Gain-Loss Theory

A social psychological theory suggesting that an increase or decrease in the perceived value or approval from others influences attraction and emotional reactions.

Compliment Hypothesis

A proposition suggesting that positive feedback or flattery can enhance the effectiveness of a persuasive message.