FIGURE 7-1 -Refer to Figure 7-1.The Marginal Product of Labour Curve Intersects

question 130

Multiple Choice

FIGURE 7-1
-Refer to Figure 7-1.The marginal product of labour curve intersects the average product of labour curve when

• A)the firm is at its capacity.
• B)the firm achieves increasing returns.
• C)average product is at its maximum.
• D)diminishing returns sets in.
• E)total product is at its maximum.

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Definitions:

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Gaertner and McLaughlin

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