Which of the Following Statements Is True

question 258

Multiple Choice

Which of the following statements is true?

• A)The average product of labor is at its maximum when the average product of labor equals the marginal product of labor.
• B)The average product of labor is at its minimum when the average product of labor equals the marginal product of labor.
• C)The average product of labor tells us how much output changes as the quantity of workers hired changes.
• D)Whenever the marginal product of labor is greater than the average product of labor the average product of labor must be decreasing.

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Definitions:

Mean

The average value of a set of numbers, calculated by dividing the sum of all values by the number of values.

Normal Distribution

An equal-probability distribution around the mean, which shows that instances near the mean happen more frequently than instances far from the mean.

Normal Probability Distribution

A bell-shaped distribution that is symmetric about the mean, showing how random variables are distributed.

Continuous Probability Distribution

A probability distribution that assigns probabilities to a continuum of possible outcomes, often described by a probability density function.