At 76 Units of Labor, a Firm Finds That Average

question 7

Multiple Choice

At 76 units of labor, a firm finds that average product of labor equals 39.6 and marginal product of labor equals 42.9.We can conclude that the average product curve at 76 units of labor is:

• A) upward-sloping.
• B) downward-sloping.
• C) vertical.
• D) horizontal.

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Definitions:

Substitutes

Products or services that can be used in place of each other, having a positive cross-price elasticity of demand.

Market Extent

Refers to the geographical or demographic reach of a market, influencing the potential customer base and the scope of economic activities.

Geographical Extent

The area over which a specific phenomenon, policy, or condition applies or has influence.

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