After Hiring a New Employee,a Manager Finds That the Total

question 74

Multiple Choice

After hiring a new employee,a manager finds that the total output has increased.When the manager hires another employee however,he realizes that although the total production has increased,the increment is less than the previous case.This is the result of:

• A)diseconomies of scale.
• B)a general economic downturn.
• C)diminishing marginal returns.
• D)the lack of skills of the two employees.
• E)constant returns to scale.

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Definitions:

Net Float

The difference between checks written against and deposited in an account, which has not yet been cleared and credited or debited.

Writes Cheques

The act of creating a written document instructing a bank to pay a specific amount of money from the writer's account.

Cheques Clear

Refers to the process by which a bank verifies that the funds available in the account of the individual who wrote the cheque are sufficient to cover the amount, and subsequently moves those funds to the account of the cheque recipient.

Incremental Bad Debt

Additional losses expected from non-payment or default by borrowers beyond what was originally anticipated.