Mr. Woodard's cabinet shop is experiencing rapid growth in sales. As sales have increased, Mr. Woodard has found it necessary to hire more workers. However, he has observed that doubling the number of workers has less than doubled his output. What is the likely explanation?
A. The law of supply
B. The law of diminishing marginal productivity
C. The law of demand
D. The law of diminishing marginal utility
Answer: B
You might also like to view...
Higher prices
A. are always against the public interest. B. may sometimes serve the public interest. C. should never be allowed. D. occur automatically for abundant goods.
Increasing concentration always means an industry has become effectively monopolized.
Answer the following statement true (T) or false (F)
On average professors of finance earn more than professors of economics. Other things the same, what does this imply about the supply of each type of professor?
If the quantity of gidgets demanded increases when the price of gadgets decreases
A. gidgets and gadgets are complements. B. gidgets and gadgets are substitutes. C. gadgets are normal goods, while gidgets are inferior goods. D. gidgets are normal goods, while gadgets are inferior goods.