When the Marginal and Average Products of Labor Are Equal

question 261

Multiple Choice

When the marginal and average products of labor are equal to each other, the

• A) average product must be at its maximum value.
• B) marginal product must be at its maximum value.
• C) total product must be at its maximum value.
• D) None of the above answers is correct

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Definitions:

Attractive Location

A site or place deemed desirable for setting up businesses or operations due to factors such as low costs, strategic position, or access to resources.

Fixed Cost

Expenses that do not change with the level of goods or services produced, such as rent, salaries, or loan payments.

Variable Cost

Costs that vary directly with the level of production or service activity, such as materials or labor costs.

Attractive Location

A place considered desirable for living, working, or setting up a business due to its advantages like accessibility, scenery, or economic opportunity.