For a Simple Graph of a Production Function with Q

question 88

Multiple Choice

For a simple graph of a production function with Q on the y-axis and L on the x-axis, which of the following statements is true?

• A)The slope of the production function at a specific point equals the marginal product of labor whereas the average slope of the production function equals the average product of labor.
• B)The average product of labor is equal to the slope of the ray from the origin to the apex of the production function for all values of L.
• C)The slope of the production function at a specific point equals the marginal product of labor whereas the slope between the origin and a specific point on the production function equals the average product of labor.
• D)The average product of labor is never equal to the slope of the ray from the origin to the apex of the production function.

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Definitions:

Price Reduction

A strategy involving the lowering of the selling price of products or services, typically to attract more customers or respond to market competition.

Traceable Fixed Expense

Fixed costs that can be directly associated with a specific cost center or business segment.

Net Operating Income

The total profit of a company after subtracting operating expenses but before deducting taxes and interest.

Price Reduction

A decrease in the regular selling price of a product or service, usually to stimulate sales or clear inventory.