When the Marginal Product of Labor Is Greater Than the Average

question 164

Multiple Choice

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

• A) marginal product of labor must be increasing as labor increases.
• B) average product of labor must be increasing as labor increases.
• C) total product must be increasing at an increasing rate as labor increases.
• D) None of the above answers is correct.

---

Definitions:

Homeostasis

Homeostasis is the biological process by which living organisms maintain stable internal conditions (such as temperature, pH, and electrolyte balance) despite changes in the external environment.

Pleasure Principle

A concept in psychoanalytic theory referring to the instinctual seeking of pleasure and avoiding of pain to satisfy biological and psychological needs.

Determinism

The philosophical doctrine that all events, including moral choices, are ultimately determined by causes external to the will.

Associationism

A theory in psychology that states mental processes operate by the association of one mental state with its successors.