Suppose You Are Using 10 Units of Labor in Your

question 17

Multiple Choice

Suppose you are using 10 units of labor in your short-run production process.At this point, the average product of your labor is 10, and the marginal product of the last unit of labor was 14.Given this, we know that the:

• A)Average product of labor must be increasing
• B)Average product of labor must be decreasing
• C)Marginal product of labor must be increasing
• D)Marginal product of labor must be decreasing

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Definitions:

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price, often used by investors to assess the income-generating ability of a stock.

Market Price

The current price at which a good or service can be bought or sold in the open market.

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested in the business.