When the Average Product of Labor Is Greater Than the Marginal

question 396

Multiple Choice

When the average product of labor is greater than the marginal product of labor

• A) the marginal product of labor must be increasing as labor increases.
• B) there must be increasing marginal returns.
• C) the average product of labor is decreasing as labor increases.
• D) None of the above answers is correct

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Definitions:

Joint Probability

The probability of two or more events happening at the same time.

Equity Loan

A type of loan in which the borrower uses the equity of their home as collateral.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.

Relative Frequency

The ratio of the number of times an event occurs to the total number of trials or observations.