When the Marginal Product of Labour Is Greater Than the Average

question 128

Multiple Choice

When the marginal product of labour is greater than the average product of labour,

• A)the average product of labour is increasing.
• B)the marginal product of labour is increasing.
• C)the total product curve is negatively sloped.
• D)the firm is experiencing diminishing marginal returns.
• E)the firm is experiencing constant returns.

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Definitions:

Purchase Invoice

A document received by a buyer from a seller, detailing the products or services purchased and the amounts due.

Net Realizable Value

The estimated selling price of an asset in the ordinary course of business minus any costs expected to be incurred in completing, transporting, and selling it.

Damaged Goods

Items that are broken, defective, or otherwise impaired, often resulting in reduced value or the need for disposal.

Days' Sales in Inventory

A financial metric that indicates the average number of days it takes for a company to turn its inventory into sales.