If a Firm Is Experiencing Diminishing Returns to Labor

question 1

Multiple Choice

If a firm is experiencing diminishing returns to labor,

• A)marginal product of labor must be decreasing.
• B)it must be producing in the long run.
• C)marginal cost must be decreasing.
• D)the firm must be experiencing diseconomies of scale.
• E)the firm is apparently hiring less-qualified units of labor.

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Definitions:

Trait Approach

A theory in psychology that posits personality is comprised of broad, enduring patterns of behavior, thought, and emotion.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behaviors, thoughts, and feelings.

Behavioral/social Learning

A theory suggesting that behavior is learned through the observation of others and the outcomes of their actions.

Depressed Person

An individual suffering from depression, a psychological condition marked by persistent sadness, loss of interest, and a range of emotional and physical problems.