When more workers are hired, the firm's output expands at an increasing rate only

a. when the law of diminishing returns is operative
b. under conditions of noncompeting labor markets
c. if each worker's MPP is positive
d. when technology is improved
e. when the gains from specialization of labor outweigh all other factors affecting labor productivity

E

Economics

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The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, the highest price for insurance this person would pay is

A) $0. B) $5,000. C) $10,000. D) $20,000.

Economics

A transfer payment is a sum of money

A. spent by government for new goods and services. B. shifted between members of a household. C. given by government without a good or service in exchange. D. moved between companies for goods and services. E. required to pay taxes.

Economics