A Firm Uses Labor as an Input in Production

question 94

Multiple Choice

A firm uses labor as an input in production.For the range of output where the average product of labor is increasing:

• A)the marginal product of labor must be below the average product of labor.
• B)the total product is at a maximum.
• C)the marginal cost must also be increasing.
• D)the average variable cost must be decreasing.

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Definitions:

Periodic Deposit Investment

An investment strategy involving regular, fixed-amount contributions into an investment account.

Simple Interest

Interest that is calculated on the principal in an account, using the formula I = prt.

Checking Account

A checking account is a bank account that allows for easy access to funds through checks, debit cards, and electronic transfers, used primarily for daily transactions.

ATM Withdrawal

The act of taking out cash from one's bank account through an Automated Teller Machine.