As the Quantity of Labor Increases,the Marginal Product of Labor

question 96

Multiple Choice

As the quantity of labor increases,the marginal product of labor

• A) is constant.
• B) increases.
• C) decreases.
• D) may either increase or decrease.

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Definitions:

Frontier

In economic terms, the frontier represents the maximum production capacity or efficiency that can be achieved with the current technology and resources.

Economic Inefficiency

A situation where resources are not allocated optimally, leading to waste or an outcome where potential gains are not fully realized.

Production Possibilities Curve

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully employed.

Market Prices

The amounts at which goods and services can be bought or sold in open markets.