The Marginal Productivity of Labor Will Eventually Decrease as More

question 145

Multiple Choice

The marginal productivity of labor will eventually decrease as more workers are employed because

• A) average product is increasing.
• B) total product is decreasing.
• C) the amount of capital will also be increasing.
• D) on the average each worker will have fewer inputs to work with.

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Definitions:

Conditional Sale Contracts

Agreements where the sale of goods or property is conditional upon certain terms, typically the buyer making payments over a period, with the title remaining with the seller until conditions are met.

Purchase Price

The amount of money paid to acquire a good, service, or asset.

Combined Equivalent

The unified outcome or measure that represents the aggregate result or impact of several elements.

Scheduled Payments

Payments that are planned and set to occur at regular intervals over a specified period.