If Hiring More Workers Causes Each Additional Worker to Contribute

question 10

Multiple Choice

If hiring more workers causes each additional worker to contribute less to the total output:

• A) diminishing profitability is present
• B) diminishing marginal product is present
• C) increasing marginal product is present
• D) diminishing marginal cost is present

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Definitions:

Equity Position

An equity position refers to ownership interest in a company through the holding of shares or stocks, indicating partial ownership.

Business Worth

The monetary value or equity value of a business, determined through various valuation methods.

Secondary Market

A market where investors buy and sell securities they already own rather than purchasing new issues from the issuing company.

Securities

Securities that signify either an equity stake in a publicly listed company, a debt interest in a corporation or government entity, or entitlements to ownership through options.