In the Short Run, Why Does a Production Function Eventually

question 38

Multiple Choice

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

• 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 labor and specialization are used up.
• D)The opportunity cost of hiring additional workers must eventually rise.

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Definitions:

Regulate Behavior

The ability to control one's actions and responses in accordance with social norms, personal goals, or legal guidelines, often requiring self-discipline and executive functions.

Middle Childhood

A stage in human development that occurs between early childhood and adolescence, typically from ages 6 to 12.

Latency Stage

A phase in Freud's psychosexual development theory occurring from age six to puberty, where sexual urges are repressed and social and intellectual skills are developed.

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology.