If Hiring One More Worker Causes the Average Product of Labour

question 31

Multiple Choice

If hiring one more worker causes the average product of labour to fall,then

• A) The marginal product of labour is less than the average product of labour
• B) The marginal product of labour is equal to the average product of labour
• C) The marginal product of labour is greater than the average product of labour
• D) The marginal product of labour is negative

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Definitions:

Contract

A legally binding agreement between two or more parties that creates mutual obligations enforceable by law.

Expiration Date

The date on which an option, right, or obligation ends or expires.

Land Option Contract

A legal agreement that gives one party the right, but not the obligation, to buy or sell land at a predetermined price within a specific time period.

Decision Tree

A graphical representation used in decision analysis to lay out choices and their possible consequences, including chance event outcomes, resource costs, and utility.