Which of the Following Describes How Output Changes in the Short

question 169

Multiple Choice

Which of the following describes how output changes in the short run? Because of specialization and the division of labor, as more workers are hired,

• A)output will first increase at an increasing rate, then output will increase at a decreasing rate.
• B)output will first decrease at an increasing rate, then increase at a decreasing rate.
• C)the marginal product of labor will first decrease, then increase at a decreasing rate.
• D)the marginal product of labor will first be negative and then will be positive.

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Definitions:

Direct Materials

Materials that can be directly linked to the manufacturing of particular products or services.

Units Sold

The total quantity of products or services sold within a specific period, often used to measure business performance.

Direct Labor

The labor costs directly tied to the production of goods or the provision of services.

Variable Costs

Expenses that vary directly with the production output or activity levels.