Which of the following statements regarding comparisons of productivity across two firms is true?
A. The firm with the higher APL is the more productive firm.
B. The firm with the higher MPL is the more productive firm.
C. The firm with the lower MPL is the more productive firm.
D. The average product of labor can vary with the choice of inputs and the level of outputs, so the firm with the higher APL may not be the most productive.
D. The average product of labor can vary with the choice of inputs and the level of outputs, so the firm with the higher APL may not be the most productive.
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A proprietorship is
A) two or more individuals in business together. B) a corporation that is taxed like an individual. C) a business owned by one individual who makes all of the decisions. D) a government-owned franchise.
The producer surplus
A. the area under the demand curve from the origin to the quantity purchased. B. the area above the supply curve but below the price line from the origin to the quantity purchased. C. the area under the demand curve but above the price line from the origin to the quantity purchased. D. the area under the supply curve from the origin to the quantity produced.