Which of the Following Statements Regarding Comparisons of Productivity Across

question 37

Multiple Choice

Which of the following statements regarding comparisons of productivity across two firms is true?

• A) The firm with the higher AP_L is the more productive firm.
• B) The firm with the higher MP_L is the more productive firm.
• C) The firm with the lower MP_L is the more productive firm.
• D) The average product of labor can vary with the choice of inputs and the level of outputs, so the firm with the higher AP_L may not be the most productive.

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Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or social pressures.

Groupthink

A psychological phenomenon wherein the desire for harmony within a decision-making group leads to irrational or dysfunctional decision-making outcomes.

Censoring Information

The practice of selectively suppressing or withholding information deemed objectionable, sensitive, or inconvenient by certain bodies or individuals.

Gathering Information

The process of collecting data, facts, and details from different sources to increase knowledge or make informed decisions.