A Firm's Total Product Curve Shows That at First It

question 6

Multiple Choice

A firm's total product curve shows that at first it has

• A) economies of scale and then diseconomies of scale.
• B) diseconomies of scale and then economies of scale.
• C) increasing marginal returns and then diminishing marginal returns.
• D) diminishing marginal returns and then increasing marginal returns.

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Definitions:

Scanlon Plan

An incentive plan designed to encourage cooperation, involvement, and sharing of benefits among employees through improved performance and productivity.

Gainsharing

Group incentive program that measures improvements in productivity and effectiveness objectives and distributes a portion of each gain to employees.

Incentive Pay

A form of compensation designed to reward employees for their performance and productivity, often linked to specific performance targets.