If Marginal Product Is Greater Than Average Product

question 25

Multiple Choice

If marginal product is greater than average product:

• A)total product must be increasing.
• B)marginal product must be decreasing.
• C)marginal product must be increasing.
• D)average product may be increasing or decreasing.

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Definitions:

Inventory Turnover

A ratio that measures how many times a company's inventory is sold and replaced over a specific period, highlighting the efficiency of inventory management.

FIFO

A method used in accounting to assign the cost of goods sold to the earliest purchased items in inventory, leading to different inventory value and profit measure from other methods.

Net Income

The total profit of a company after all revenues, expenses, and taxes have been deducted.

Inventory Valuation

The method used to assign a monetary value to inventory, considering the cost of goods sold and the current market value.