If a Firm Is Operating on the Production Function,then Workers

question 88

Multiple Choice

If a firm is operating on the production function,then workers:

• A) must be putting forth maximal effort.
• B) may not be putting forth maximal effort.
• C) are usually putting forth average effort.
• D) are usually putting forth minimal effort.

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Definitions:

Total Cost

The sum of fixed and variable costs incurred in the production of goods or services.

Output

The total quantity of goods or services produced by an individual, firm, or country within a certain period.

Diminishing Marginal Returns

A principle in economics that indicates a decreasing level of incremental output for each additional unit of input, after a certain point.