As Product Co

question 186

Multiple Choice

As Product Co. adds the first four workers to its production process in the short run, its output rises from 0 to 12 to 25 to 35 to 43. Addition of the fifth worker will most likely lead to an output rate

• A) greater than 51.
• B) equal to 51.
• C) less than 51.
• D) greater than 51 if the firm experiences diseconomies of scale.
• E) none of the above.

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Definitions:

Technology

Business application of knowledge based on scientific discoveries, inventions, and innovations.

U.S. Productivity

measures the efficiency of production in the United States, typically gauged by the output of goods and services per unit of labor input.

Gross Domestic Product

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Nation's Total Productivity

A measure of the efficiency of production within a country, accounting for the output of goods and services relative to input resources.