Suppose That for a Given Firm, the Increase in Output

question 135

Multiple Choice

Suppose that for a given firm, the increase in output resulting from the last worker hired is less than the increase in output of the previous worker hired. This is an example of

• A) diminishing returns.
• B) constant returns.
• C) increasing return.
• D) capital deepening.

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Definitions:

Effective Rate

The actual interest rate on an investment or loan, taking into account the effect of compounding over a given period of time.

Effective Annual Rate

It is the interest rate that is adjusted for compounding over a given period. Essentially, it represents the actual annual return on an investment or the actual cost of borrowing.

Per Month

A recurring period or frequency, indicating that an action or event occurs or is calculated on a monthly basis.

Effective Rate

The actual interest rate an investor earns or pays on an investment or loan, taking into account the compounding of interest.