Suppose That the Average Product of Labour Is 100 and the Marginal

question 42

True/False

Suppose that the average product of labour is 100 and the marginal product of labour is 50 when 5 workers are employed. It therefore must be true that the average product of labour will be greater than 100 when one more worker is hired.

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Definitions:

Intrinsic Value

The actual value of a company, asset, or currency determined through fundamental analysis without reference to its market value.

Return

The gain or loss made on an investment over a specified period, typically expressed as a percentage of the investment’s initial cost.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively a company uses investments to generate earnings growth.

Dividend Growth Rate

The annual percentage rate at which a company's dividend payments to shareholders increase.