Average Product Decreasing With Additional Workers


1. When hiring additional workers decreases the average product of labor:

A) marginal product is increasing.
B) marginal cost is above average variable cost.
C) average cost is falling.
D) the firm is experiencing increasing returns to scale.

2. Sole proprietors and partners share the characteristic of:

A) being difficult to establish.
B) the ability to raise large amounts of capital.
C) issuing stock.
D) unlimited liability.


These multiple choice questions belong to Economics. The 1st question is about average product decreasing with additional workers and the 2nd question is about the characteristics of sole proprietors and partners.

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