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:

Sequential Order

The arrangement of objects, events, or values in a specific sequence where the order is significant.

Dependent Variable

The variable in an experiment that is observed and measured to see how it is affected by the independent variable.

Independent Variables

Elements in an experiment or schematic that are altered or sorted to examine their influence on variables that rely on them.

Forecast

A prediction or estimate of future events or trends, often based on analysis of past and present data.