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Consider the following three statements: In which of the three cases above could the rental activity automatically be considered a passive activity?
Marginal Product
The additional output that is produced by using one more unit of a particular input while holding other inputs constant.
First Worker
The initial employee hired in a startup or new business venture, often taking on multiple roles and responsibilities.
Marginal Product
The extra production achievable by incorporating an additional unit of a particular input, assuming all other variables remain constant.
Average Product
The output per unit of input, calculated by dividing total output by total input.
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