-Which of the Following Is Correct About Marginal and Average

question 12

Multiple Choice

-Which of the following is correct about marginal and average products?

• A) When the marginal product is increasing, the average product must be increasing.
• B) When the marginal product exceeds the average product, the average product must be increasing.
• C) When the average product is increasing, the marginal product must be decreasing.
• D) When the marginal product is decreasing, the average product must be decreasing.
• E) When the marginal product is increasing, the average product must be decreasing.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in a net profit or loss.

Balance Sheet Accounts

Accounts that reflect the financial position of a company, including assets, liabilities, and shareholders' equity at a specific point in time.

Cash Paid

The outflow of cash for various purposes, such as paying for goods, services, labor, or settling debts.

Merchandise

Products or goods that are bought, sold, or traded in any business operation.