When a Production Function Exhibits a Diminishing, but Positive, Marginal

question 51

Multiple Choice

When a production function exhibits a diminishing, but positive, marginal product of labor,

• A)output increases, but at an increasing rate, as more workers are employed.
• B)output increases, but at a decreasing rate, as more workers are employed.
• C)output declines as more workers are employed.
• D)the effects on marginal product are ambiguous.

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Definitions:

Trait Methods

Techniques in psychology and human resource management that assess individual characteristics, such as personality traits, to predict job performance.

Behavioural Methods

Techniques and approaches used in managing and changing individuals' behaviors in various settings, including the workplace.

Results Methods

Techniques or processes used to evaluate the outcomes of actions, projects, or strategies, focusing on the achievement of specific objectives.

Critical Incidents

Significant events or situations that require immediate attention and action due to their impact on operations or individuals.