Once Production Has Reached the Maximum Average Product of Labor,if

question 95

Multiple Choice

Once production has reached the maximum average product of labor,if production increases then

• A) average fixed cost rises.
• B) total costs decrease.
• C) total product decreases.
• D) decreasing marginal returns occur.
• E) the plant size must be increased.

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Definitions:

Pension Retirement Benefits

Long-term benefits or compensations provided to employees upon retirement, which may include contributions made by the employer to a pension plan.

U.S. Tax Laws

The body of laws governing federal, state, and local taxation in the United States, affecting individuals, businesses, corporations, and other entities.

Postretirement Benefit Expense

The cost incurred by an employer to provide non-pension postretirement benefits such as health care to retired employees, recognized during the period in which the employees render services.

Actual Return

The real profit or loss generated on an investment over a specific period, reflecting the difference between the ending value and the beginning value, adjusted for dividends and interest.