If the Price of Labor Is Constant and a Firm

question 172

Multiple Choice

If the price of labor is constant and a firm experiences diminishing marginal product, then its

• A) marginal costs decrease.
• B) fixed costs increase.
• C) average variable cost increases.
• D) total costs decrease.

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Definitions:

Fine Movements

Precise physical actions involving small muscle groups, often requiring high levels of coordination and control, such as writing or tying a shoelace.

Primary Motor Cortex

The region of the brain responsible for the generation of neural impulses controlling voluntary muscle movements.

Fine Movements

Precise, controlled movements that require small muscle coordination, such as writing with a pencil or threading a needle.

Prefrontal Cortex

The region of the brain located at the front of the frontal lobes, instrumental in decision-making, planning, and moderating social behavior.