What Happens When the Marginal Product of Labour Rises

question 168

Multiple Choice

What happens when the marginal product of labour rises?

• A) The marginal cost of production will exceed the average total cost
• B) The marginal cost of production also rises
• C) The marginal cost of production falls
• D) The average total cost of production also rises

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Definitions:

Rationality

The quality of being based on or in accordance with reason or logic.

Challenges

Difficult situations that require a person to utilize skills and resources in order to overcome them.

Alfred Binet

A French psychologist best known for developing the first practical intelligence test, the foundation for modern IQ testing.

Psychological Measurement

The process of acquiring and quantifying psychological traits, abilities, or outcomes through tests and assessments.