As More Output Is Produced, the Marginal Product of Labor

question 268

Multiple Choice

As more output is produced, the marginal product of labor declines

• A)because of the law of diminishing returns.
• B)if firms reduce the wage paid to labor.
• C)if the firm's output supply curve is inelastic.
• D)because the firm's marginal revenue declines.

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Definitions:

Saving

The act of setting aside income for future use, often with the aim of achieving financial goals or providing for future needs.

Domestic Production

The total goods and services produced within the borders of a country.

Expenditures

The amount of money spent on various goods and services or to cover operating costs by individuals, businesses, or other entities.

Flow of Dollars

Refers to the movement of money through an economy, tracking how it is earned, spent, and invested.