Refer to the Diagram

question 109

Multiple Choice

Refer to the diagram. If labor is the only variable input, the average product of labor is at a

• A)minimum at point b.
• B)maximum at point b.
• C)maximum at point a.
• D)maximum at point c.

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Definitions:

Rental Income

Earnings generated from leasing out property or equipment, recorded as income by the property owner or lessor.

Normal Balance

The aspect of an account, be it on the debit or credit side, designated for recording increments to the account.

Credit

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.

Adjusting Entry

An entry made in the accounts to reflect a correct amount of revenues and expenses for a specific period before preparing the financial statements.