If Marginal Product Is Greater Than Average Product, Then

question 104

Multiple Choice

If marginal product is greater than average product, then

• A) average product must be decreasing.
• B) marginal product must be decreasing.
• C) marginal product must be increasing.
• D) marginal product could either be increasing or decreasing.

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Definitions:

First-Quarter Dividend

A dividend payment made by a company to its shareholders, typically announced after the first financial quarter's results.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Fixed Assets

Long-term tangible property owned by a business that is used in producing goods and services.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.