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:

Premium

A premium is the amount paid for an insurance policy, representing the price for the insurance coverage or the amount over the nominal value of something.

Advanced Degrees

Educational certifications beyond the undergraduate level, including master's, doctoral, and professional degrees.

Median Earnings

The middle value of earnings in a given distribution, where half of the observation points are below and half above.

Labor Market

The marketplace where the supply of workers is met by the demand for them by employers, determining employment levels and wages.