When the Marginal Product Curve Is Above the Average Product

question 86

Multiple Choice

When the marginal product curve is above the average product curve, _______as output increases.

• A) marginal product must decrease
• B) average product must increase
• C) marginal product must increase
• D) average product must decrease

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Definitions:

Net 30 Credit Policy

A payment term indicating that the payment for goods or services is due 30 days after the invoice date, often used in business-to-business transactions.

Monthly Interest Rate

The interest rate applied to a loan or investment for one month, often used to calculate the monthly interest payments or earnings.

Aging Schedule

A compilation of accounts receivable by the age of each account.