In the Short Run, Why Does a Production Function Eventually

question 234

Multiple Choice

In the short run, why does a production function eventually display diminishing returns to labour?

• A)As the number of workers increases, it becomes difficult to monitor them.
• B)As a firm hires more workers, the skills and the work ethic of the additional workers will eventually decline.
• C)As the number of workers increases, eventually the gains from the division of labour and specialisation are used up.
• D)The opportunity cost of hiring additional workers must eventually rise.

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Definitions:

Postsynaptic Potential

A change in membrane potential of the postsynaptic terminal of a synapse, typically induced by the binding of neurotransmitters.

Neurotransmitters

Chemical substances that transmit signals across a synapse from one neuron to another in the brain and nervous system.

Synaptic Cleft

The narrow space between the terminal button of a neuron and the dendrite or cell body of another neuron where neurotransmitters are released.

Inhibitory Postsynaptic

Referring to a postsynaptic potential that makes a neuron less likely to generate an action potential, essentially serving to inhibit neuronal firing.