Other Things Held Constant, After Some Point Hiring Additional Units

question 91

Multiple Choice

Other things held constant, after some point hiring additional units of labor will cause the marginal physical product of labor to decline because

• A) the firm is a price taker.
• B) the wage rate increases when additional workers are hired.
• C) of the law of diminishing marginal product.
• D) the supply of labor is perfectly elastic.

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Definitions:

Domesticating

The process of adapting wild plants or animals for human use, such as for food, work, companionship, or as pets.

Pastoralism

An economic system based on tending herds of large animals.

Collectively owns

The state of ownership where assets or properties are held in common by a group rather than individuals.

State/welfare capitalism

An economic system where the state plays a significant role in protecting and promoting the economic and social well-being of its citizens, often through extensive social services, and public policies aimed at wealth distribution.