If the Average Productivity of Labor Equals the Marginal Productivity

question 32

Multiple Choice

If the average productivity of labor equals the marginal productivity of labor,then

• A) the average productivity of labor is at a maximum.
• B) the marginal productivity of labor is at a maximum.
• C) Both A and B above.
• D) Neither A nor B above.

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Definitions:

Maximum Level

The highest or utmost point, degree, or volume of something that can be achieved or reached.

Total Revenue

Total earnings from business activities such as selling goods or providing services, before removing any operational costs.

Barrier To Entry

Elements that create barriers or obstacles, making it difficult for new entrants to join a particular market or business sector.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation increases leading to a reduction in average costs.