Assume That 1 Laborer Produces 6 Units of Output, 2

question 145

Multiple Choice

Assume that 1 laborer produces 6 units of output, 2 laborers produce 14 units, 3 laborers produce 20 units, and 4 laborers produce 24 units. Diminishing returns to labor set in

• A)when the firm hires the first laborer.
• B)never; diminishing returns have not set in, and total output is still increasing.
• C)when the firm hires the second laborer.
• D)when the firm hires the third laborer.
• E)when the firm hires the fourth laborer.

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Definitions:

P-chart

A type of control chart used in statistical quality control to monitor the proportion of defective items in a process over time.

Lower Control Limit

The lowest threshold in statistical quality control, below which a process is considered out of control.

P-chart

A statistical control chart for studying the proportion of defective units in a batch.

Percent Defective

The percentage of all units produced that fail to meet the required quality standards.