Suppose That There Are Diminishing Returns to Labour

question 257

Multiple Choice

Suppose that there are diminishing returns to labour.If the _____ of labour hired by a firm increases,holding everything else constant,the _____ labour will _____.

• A) price;demand for;increase
• B) quantity;marginal product of;fall
• C) quantity;marginal product of;rise
• D) quantity;value of the marginal product of;rise

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Definitions:

Latent Class Analysis

Latent Class Analysis is a statistical method used for identifying subgroups within a larger population based on individuals' responses or characteristics, assuming that these subgroups are not directly observable.

Mediators

Variables that explain the mechanism through which an independent variable influences a dependent variable in an experimental setting.

Multiple Regression Analysis

A statistical technique that examines the linear relationship between a dependent variable and two or more independent variables.

Cross-Sectional Survey Studies

Research that involves collecting data from a population or a representative subset at one specific point in time to examine various variables.