The goal of all regulation is the creation of perfectly competitive markets

In a certain textile firm, labor is the only short term variable input. The manager notices that the marginal product of labor is the same for each unit of labor, which implies that

A) the average product of labor is always greater that the marginal product of labor B) the average product of labor is always equal to the marginal product of labor C) the average product of labor is always less than the marginal product of labor D) as more labor is used, the average product of labor falls E) there is no unambiguous relationship between labor's marginal and average products.

Passive macroeconomic policy would rely on natural market forces and automatic stabilizers to close an expansionary gap

a. True b. False Indicate whether the statement is true or false