Is the statement, “A manager should never employ another worker if this person causes diminishing returns” correct? Why or why not? If not, why?
For a short run production function in which output is figured by the # of workers utilized(capital stock held constant) which is true?
When there are few workers the marginal product od labor will be constant
When marginal product of labor is negative, total product is falling
When diminishing returns set in, adding 1 more worker lowers output
All are true
All all false