When the Marginal Product of Labour Rises

question 178

Multiple Choice

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:

Trade Credit

A financial arrangement where a buyer is allowed to purchase goods or services and pay for them at a later date.

Rate of Interest

The percentage of a loan amount charged for borrowing money, expressed as an annual percentage of the principal.

Cash Discount

A reduction in the price paid for goods or services if payment is made in cash or within a certain time period.

Balance Sheet Hedge

A financial strategy used to limit or offset the risk of currency exchange rate fluctuations affecting a company's balance sheet.