As a Firm Hires More Labor and Each Worker Is

question 90

Multiple Choice

As a firm hires more labor and each worker is able to specialize,what happens to each additional worker's marginal productivity?

• A) It increases at first,then decreases.
• B) It increases continuously.
• C) It decreases continuously.
• D) It decreases at first,then increases.
• E) It remains constant,no matter how much labor is hired.

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Definitions:

Call Option

A financial contract giving the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

In The Money

A term describing an option contract that has intrinsic value, indicating it's profitable to exercise it.

Exercise Price

The price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security.

Put Option

A financial contract giving the buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.