Other Things Being Equal, as Diminishing Marginal Returns Begin to Occur

question 35

Multiple Choice

Other things being equal, as diminishing marginal returns begin to occur, the marginal revenue product of labor

• A) decreases as more workers are used.
• B) increases as more workers are used.
• C) remains unchanged as more workers are used.
• D) none of the above

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Definitions:

Forming

A manufacturing process that involves shaping material into a specific configuration.

Assembly

The process of putting together components or parts to build a finished product, often involving a combination of manual and automated techniques in manufacturing.

Predetermined Overhead Rate

An estimated overhead cost rate used in cost accounting to allocate expected indirect costs to specific products or job orders based on a specific activity base.

Machine-Hours

A measure of production time, where one machine-hour equals one hour of operation of a machine.