When a Production Function Exhibits a Marginal Product of Labour

question 133

Multiple Choice

When a production function exhibits a marginal product of labour that is diminishing (but positive) :

• A)output declines as more workers are employed
• B)the firm should never increase its employment
• C)output increases, but at a decreasing rate as more workers are employed
• D)the firm cannot be maximising profit

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Definitions:

Perceptual Ambiguity

A situation in which a visual stimulus lacks a clear interpretation due to conflicting perceptions or because it can be seen in more than one way.

Pointillism

An art technique where small, distinct dots of color are applied in patterns to form an image, associated with post-Impressionist painters.

Cubism

An early 20th-century art movement marked by the use of geometric shapes and a viewpoint that represents subjects from multiple perspectives.

Gestalt Continuity

A principle in Gestalt psychology that suggests humans naturally perceive objects as organized patterns and unified wholes rather than as separate components.