According to the Principle of Diminishing Returns to Labor, If

question 81

Multiple Choice

According to the principle of diminishing returns to labor, if the amount of capital and other inputs are held constant, employing additional workers:

• A)increases output at an increasing rate.
• B)increases output at a constant rate.
• C)increases output at a decreasing rate.
• D)decreases output at an increasing rate

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Definitions:

Seasonal Discounts

Price reductions offered during specific times of the year to stimulate sales during slow periods.

Inventory

The quantity of goods or materials on hand that a business holds for the purpose of resale or production.

Break Even

The point at which total revenues equal total costs, resulting in no net loss or gain for a business.

Maintenance Service

Services performed to keep equipment or facilities in optimal working condition, including repairs, cleaning, and regular check-ups.