Which of the Following Describes How Output Changes in the Short

question 178

Multiple Choice

Which of the following describes how output changes in the short run? Because of specialisation and the division of labour, as more workers are hired

• A)output will first increase at an increasing rate, then output will increase at a decreasing rate.
• B)output will first decrease at an increasing rate, then increase at a decreasing rate.
• C)the marginal product of labour will first decrease, then increase at a decreasing rate.
• D)the marginal product of labour will first be negative and then will be positive.

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Definitions:

Asset on Credit

An asset acquired by a company through borrowing or on terms that allow for deferred payment.

Accounts Receivable

Money owed to a business by its customers for goods or services sold on credit, typically collected within a short time period.

Individual Asset

A single item of property, whether tangible or intangible, that is owned and has value to the entity holding it.

Liability Decreases

A reduction in the amounts owed by an entity to external parties or creditors.