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.

B

Economics

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A manufactured good used by labor to produce another good is

a. capital b. a tangible form of a human resource c. a consumption good as long as it is used by labor d. a form of automation e. human capital

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The Keynesian analysis of fiscal policy implies that

a. fiscal policy should generally be expansionary except during periods of economic recession. b. fiscal policy should generally be restrictive except during inflationary booms. c. the federal budget should be balanced annually except during war. d. the federal budget should be used to maintain aggregate demand at a level consistent with full employment.

Economics