If marginal productivity is decreasing as more labor is hired, then average productivity must be decreasing as well
Indicate whether the statement is true or false
False. The change in average productivity is not determined by the change in marginal productivity. Average productivity can be increasing even when marginal productivity is decreasing. Average productivity can only be decreasing when marginal productivity is below average productivity.
You might also like to view...
The primary purpose of antitrust legislation is to:
a. protect small business. b. protect the competitiveness of U.S. business. c. protect the prices of American-made products. d. ensure American labor is paid a fair wage. e. ensure firms earn only a fair profit.
When you have a job and your employer compensates you for your time with money, resulting in both of you being better off, it is an example of a voluntary exchange.
Answer the following statement true (T) or false (F)
In the U.S., society makes decisions on the direction of government policies and the provision and financing of public goods through a process that relies heavily on:
A. Unanimous voting B. General voting C. Universal voting D. Majority voting
When firms hold excess capital, the value of the multiplier decreases.
Answer the following statement true (T) or false (F)