A Straight Line Drawn from the Origin Is Tangent to a Short-Run

question 24

Multiple Choice

A straight line drawn from the origin is tangent to a short-run production function with only one input,labor.At the quantity of labor where the tangency occurs:

• A) the average product of labor is at a maximum.
• B) the marginal product of labor is at a maximum.
• C) the marginal product of labor is increasing.
• D) the average product of labor is increasing.
• E) the total product of labor is at a maximum.

---

Definitions:

Long-term Debt

Borrowings or financial obligations that are due to be repaid more than one year from the balance sheet date.

Pension Outflow

A financial term referring to payments made to retired employees or beneficiaries from a pension fund.

Lease Payment

Regular payments made by a lessee to a lessor for the use of an asset over the lease term, according to the lease agreement.

Affiliate Company

An entity that is controlled by or is under common control with another company, typically through ownership or influence.