When a Firm Increases Its Short-Run Supplies Only by Hiring

question 121

Multiple Choice

When a firm increases its short-run supplies only by hiring more labor,other inputs remaining unchanged,eventually:

• A)output will increase at a decreasing rate.
• B)the total cost of producing the good will decline.
• C)the marginal productivity of the fixed inputs will decline.
• D)the average cost of producing the good will decline.
• E)the productivity of laborers will increase.

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Definitions:

Confabulation

The unintentional fabrication of events or information, often occurring in individuals with certain types of brain damage.

Perseveration

The repetitive and continuous focus on a single idea, task, or word beyond the point of relevance, often seen in neurological and psychiatric conditions.

Residential Care

A type of living arrangement where individuals receive accommodation and personal care services, typically for the elderly or disabled.