If the Marginal Product of Labor Is ,Then Output Will

question 32

Multiple Choice

If the marginal product of labor is ,then output will as labor increases.

• A) negative,decreases
• B) positive,decreases
• C) positive,stay the same
• D) negative,stay the same
• E) negative,increases

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Definitions:

Limit Pricing

A strategy where a firm sets its product prices low enough to deter new competitors from entering the market.

Price Leader

A company or product that has a large enough market share to influence the price levels of its products or services in the industry.

Entry of New Firms

The process by which new companies enter an industry, often leading to increased competition and impacts on market prices and incumbent firms.

Oligopolistic Firms

Companies that operate in a market structure characterized by a small number of dominant firms, often leading to limited competition.