If the Price of Labor Is Constant and a Firm

question 172

Multiple Choice

If the price of labor is constant and a firm experiences diminishing marginal product, then its

• A) marginal costs decrease.
• B) fixed costs increase.
• C) average variable cost increases.
• D) total costs decrease.

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Definitions:

Misrepresentation

Misrepresentation is the providing of false or misleading information that induces another party to enter into a contract, potentially leading to legal consequences.

Duress

Duress refers to a situation where a person performs an act as a result of violence, threat, or other pressures against them, which can invalidate any agreement made under such conditions.

Non Est Factum

A legal defense claiming a signed agreement is invalid because the signer was unaware of its true nature due to a mistake or misrepresentation.

Assignee

A person to whom rights or property is legally transferred.