A Firm Uses Labor as an Input in Production

question 61

Multiple Choice

A firm uses labor as an input in production.In the short-run,its average cost will reach a minimum where:

• A)average product of labor reaches a maximum.
• B)marginal product of labor reaches a maximum.
• C)marginal cost begins to increase.
• D)marginal cost equals average cost.

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Definitions:

Tennis Rackets

Sporting equipment consisting of a handled frame with an open hoop across which a network of strings or catgut is stretched tightly, used to strike a tennis ball.

Inventory Turnover

A measure of how many times inventory is sold or used in a time period such as a year.

Net Sales

The revenue generated from goods or services sold by a company after deducting returns, allowances for damaged or missing goods, and discounts.

Beginning Inventory

The value of stock on hand at the start of an accounting period, before any purchases or sales are made.