Which of the Following Statements Is True

question 258

Multiple Choice

Which of the following statements is true?

• A)The average product of labor is at its maximum when the average product of labor equals the marginal product of labor.
• B)The average product of labor is at its minimum when the average product of labor equals the marginal product of labor.
• C)The average product of labor tells us how much output changes as the quantity of workers hired changes.
• D)Whenever the marginal product of labor is greater than the average product of labor the average product of labor must be decreasing.

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Definitions:

Budgeted Balance Sheet

A financial statement that projects the financial position of a company at a future date, estimating assets, liabilities, and equity based on anticipated financial activities and plans.

Variable Operating

Refers to operating expenses that vary in direct proportion to changes in an organization's level of activity or volume.

Fixed Expenses

Costs that do not change with the volume of production or sales, such as rent, salaries, and insurance.

Merchandise Inventory

The total cost of all the goods that a retail company has available for sale at any given time.