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

question 95

Multiple Choice

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

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

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Definitions:

Fixed Costs

Costs that do not change with the level of output or activity, over a certain period or range of production.

Variable Costs

Costs that vary directly with the level of production or service activity.

Exiting

The process of leaving or withdrawing from a situation, market, or competition, often used in the context of firms leaving an industry.

Break Even

Break even is a point at which total costs and total revenues are exactly equal, meaning there is no net loss or gain, and the business or project is just covering its expenses.