Which of the Following Statements Regarding Comparisons of Productivity Across

question 30

Multiple Choice

Which of the following statements regarding comparisons of productivity across two firms is true?

• A) The firm with the higher AP_L is the more productive firm
• B) The firm with the higher MP_L is the more productive firm
• C) The firm with the lower MP_L is the more productive firm
• D) The average product of labour can vary with the choice of inputs and the level of outputs, so the firm with the higher AP_L may not be the most productive

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Definitions:

Labour Standards

Established benchmarks for the amount of time required for a worker to complete specific tasks.

Labour Content

The total amount of work effort, measured in labor hours or cost, required to produce a unit of product or service.

Wage-Incentive Plans

Compensation strategies designed to motivate employees by linking a portion of their pay directly to their performance, productivity, or efficiency.

Standard Time

The established duration within which a task or operation should be completed, often used in productivity measurement and workforce planning.