The Average Product of Labor Is

question 288

Multiple Choice

The average product of labor is

• A) the inverse of the average product of capital.
• B) the slope of the curve showing the marginal product of labor.
• C) the slope of the curve showing the total product of labor.
• D) total product divided by the total quantity of labor employed.

---

Definitions:

Capacity

The maximum amount that something can contain or produce, often used in the context of production and manufacturing facilities.

Gross Profit

The difference between revenue and the cost of goods sold before accounting for certain other costs.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of a business.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.