Given the Law of Diminishing Marginal Returns,the Marginal Value Product

question 37

Multiple Choice

Given the law of diminishing marginal returns,the marginal value product of labor curve for a competitive firm _____,when other inputs are fixed.

• A)will be upward-sloping
• B)coincides with the firm's average revenue curve
• C)is horizontal at the price level
• D)is the same as the firm's demand curve for labor

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Definitions:

Retained Earnings

The portion of net income that is retained by a corporation rather than distributed to its shareholders as dividends.

Indirect Planning

The process of setting broader goals and strategies that indirectly guide actions and decisions without specific, detailed plans.

Interest Rates

The fee, shown as a percentage of the principal amount, that a lender imposes on a borrower for the usage of its assets.

Collection Period

The average number of days it takes for a company to receive payment after a sale has been made, indicative of the efficiency of its credit and collection policies.