The Range in Which There Is Diminishing Marginal Productivity Starts

question 82

Multiple Choice

The range in which there is diminishing marginal productivity starts at the point where:

• A) marginal product reaches its maximum.
• B) average product reaches its maximum.
• C) total product reaches its maximum.
• D) marginal product begins to decrease at an increasing rate.

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Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to changes in sales volume, indicating the degree of fixed versus variable costs.

Percentage Change

A mathematical calculation that depicts the degree of change over time, usually expressed as a percentage.

Break-Even

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and one has "broken even."

Monthly

Pertaining to or calculated for a period of one month.