Diminishing Marginal Product of Labor Occurs When Adding Another Unit

question 221

Multiple Choice

Diminishing marginal product of labor occurs when adding another unit of labor

• A)decreases output.
• B)changes output by an amount smaller than the output added by the previous unit of labor.
• C)increases output by an amount larger than the output added by the previous unit of labor.
• D)decreases output by an amount smaller than the output added by the previous unit of labor.

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Definitions:

Prior Period Adjustments

Adjustments made to correct errors in previously issued financial statements.

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue, indicating profitability.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

Retained Earnings

The portion of a company's profits that is held or retained and saved for future use, investment, or to pay debt, instead of being paid out as dividends.