If a Firm Experiences Diminishing Marginal Productivity of Labor, the Marginal

question 326

Multiple Choice

If a firm experiences diminishing marginal productivity of labor, the marginal product

• A)increases as total product increases.
• B)decreases as total product increases.
• C)increases as total product decreases.
• D)decreases as total product decreases.

Describe the psychological contract between employees and employers and the outcomes of its breach.

Define membership behavior and its significance in organizational context.

Understand the basic operations and features of Excel charts.

Identify and utilize the correct dialog boxes for macro management.

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Definitions:

Learning-by-doing

An economic concept that suggests productivity and efficiency improve through practice and the accumulation of experience.

Spreading the Overhead

The practice of distributing fixed costs over a variety of products, projects, or business units to ensure efficiency and reduce the overall cost per unit.

Economies of Scale

The cost advantage that arises with increased output of a product, as the fixed costs are spread over more units of production.

Diseconomies of Scale

This occurs when a company grows so large that the costs per unit increase.