When the Marginal Product Equals the Average Product, the

question 72

Multiple Choice

When the marginal product equals the average product, the

• A) average product curve is downward sloping.
• B) average product curve is upward sloping.
• C) marginal product is at its maximum.
• D) average product is at its maximum.

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Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Retained Earnings

The portion of net income left over after dividends have been distributed to shareholders, reinvested into the company.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.

Operating Cycle

The average period of time between the purchase of inventory and the receipt of cash from accounts receivable, representing the length of time a company's capital is tied up.