If the Marginal Product of Labor Is Greater Than the Average

question 21

Multiple Choice

If the marginal product of labor is greater than the average product of labor, then the

• A) marginal product must be increasing.
• B) average product must be increasing.
• C) marginal product must be decreasing.
• D) average product must be decreasing.

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Definitions:

Small Businesses

Entities involved in commercial, industrial, or professional activities characterized by their small size in terms of employees, revenue, or operations.

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A business structure where a single individual owns, manages, and is personally responsible for all aspects of the business, including debts.

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Human beings regarded as individuals or entities capable of owning property, having rights and responsibilities, and engaging in legal contracts and activities.

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An official business model that involves a collaboration between two or more people sharing both profits and management duties.