Decreasing Marginal Returns Occur in the Short Run as More

question 125

Multiple Choice

Decreasing marginal returns occur in the short run as more labor is hired to work in a fixed sized plant because

• A) less efficient and less productive workers are hired.
• B) adding more workers exhausts the possible gains from specialization.
• C) the entrepreneur does not know how to manage more workers.
• D) each worker will produce more than the worker previously hired.
• E) the plant becomes less specialized.

Assess the impact of trade restrictions on market efficiency and welfare.

Understand the basic concepts and arguments for and against globalization and free trade.

Comprehend the effects of trade restrictions like tariffs and quotas on domestic economies.

Analyze the impact of technological advancements on transportation costs and global trade.

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Definitions:

Competitors

Other businesses or individuals that offer similar products or services within the same market, often competing for the same customer base.

Bankruptcy Situation

A legal status of a person or entity that cannot repay debts to creditors and seeks relief through court intervention.

Commercial Banks

Financial Institutions that provide a range of services such as accepting deposits, providing loans, and offering basic investment products to the public.

Investors

Individuals or entities that allocate capital to ventures, assets, or projects with the expectation of generating a financial return.