When the Marginal and Average Products of Labor Are Equal

question 59

Multiple Choice

When the marginal and average products of labor are equal:

• A)marginal product must be at its maximum.
• B)marginal product must be at a minimum.
• C)average product must be at its maximum.
• D)average product must be increasing.

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Definitions:

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Job Cost Sheet

A record or document used in job order costing that summaries the costs associated with a particular job, including materials, labor, and overhead.

Job Order Costing

An accounting system used to calculate the cost of producing specific products or jobs, which may vary in materials, labor, and overhead.

Producing a Job

An approach to manufacturing where goods are produced based on specific customer orders, often involving customized products.