When the Marginal and Average Products of Labor Are Equal

question 261

Multiple Choice

When the marginal and average products of labor are equal to each other, the

• A) average product must be at its maximum value.
• B) marginal product must be at its maximum value.
• C) total product must be at its maximum value.
• D) None of the above answers is correct

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Definitions:

Borrowing

The act of obtaining or receiving something on loan with the promise or understanding of returning it or its equivalent.

Social Security Benefits

Payments made to eligible individuals, typically retirees or disabled workers, provided through a government system funded by payroll taxes.

Payroll Tax

Charges implemented on employers or their workforce, typically based on a proportion of the salaries paid to employees.

Income Tax Rate

The percentage of an individual's or corporation's income that is paid to the government as tax.