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.

---

Definitions:

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Conscientious

Referring to a trait of being thorough, careful, or vigilant; implies a desire to do a task well.

Critical Thinking

involves the objective analysis and evaluation of an issue in order to form a judgment.

Defensible

Defensible refers to something that can be supported or maintained with evidence, making it justifiable in the face of scrutiny or challenge.