If Hiring More Workers Results in Each Additional Worker Contributing

question 11

Multiple Choice

If hiring more workers results in each additional worker contributing successively smaller amounts of output, then which of the following is present?

• A)diminishing profitability
• B)diminishing total product
• C)diminishing marginal product
• D)Both b and c are correct.

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Definitions:

R&D Financing

The process of funding research and development activities, typically involving significant investment in innovation and technology to spur growth and competitive advantage.

R&D Activities

Research and Development activities aimed at innovating and improving products or processes.

Universities

Educational institutions focused on higher learning and research, granting academic degrees in a variety of subjects.

Spin-Off Firms

Companies formed by a division or portions of a parent company becoming an independent entity, often to pursue specific objectives or strategies that differ from the parent company.