Which One of These Is False When Compared to the Relationship

question 55

Multiple Choice

Which one of these is false when compared to the relationship between marginal and average product?

• A) When average product is increasing in labor, marginal product is greater than average product. That is, if AP_L increases in L, then MP_L > AP_L.
• B) When average product is decreasing in labor, marginal product is less than average product. That is, if AP_L decreases in L, then MP_L < AP_L.
• C) The relationship between MP_L and AP_L is not the same as the relationship between the marginal of anything and the average of anything.
• D) When average product neither increases nor decreases in labor because we are at a point at which AP_L is at a maximum, then marginal product is equal to average product.

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Definitions:

Operating Activities

Activities directly related to a company's core business operations, including income-earning endeavors and other functions central to its purpose.

Statement Of Cash Flows

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company, showing how it raises and spends cash.

Cash Received

The actual inflow of cash into a business from various sources such as sales, financing, or investment activities.

Interest

The cost of borrowing money or the return on invested funds, usually expressed as an annual percentage rate.