Marginal Product Crosses the Horizontal Axis (Is Equal to Zero)

question 30

Multiple Choice

Marginal product crosses the horizontal axis (is equal to zero) at the point where:

• A) average product is maximized.
• B) total product is maximized.
• C) diminishing returns set in.
• D) output per worker reaches a maximum.
• E) All of the above are true.

---

Definitions:

Replenishment Lead Time

The interval between the placement of an order and its delivery, significant in inventory management and planning.

Product Availability

The degree to which products are in stock and accessible to customers when they want to purchase them.

Manufacturing Cost

Refers to the total expenses involved in the production of goods, including raw materials, labor, and overhead costs.

VMI

Vendor-managed inventory, a supply chain practice where the supplier takes full responsibility for maintaining an agreed inventory level at the buyer's premises.