Asked by
Arturo Burgueño
on Dec 19, 2024
Verified
When average variable cost is at a minimum,
A) marginal cost is at a maximum.
B) the average product of labor is at a minimum.
C) the marginal product of labor is at a minimum.
D) the average product of labor is at a maximum.
Average Variable Cost
The total variable costs (costs that change with production volume) divided by the number of units produced.
Average Product of Labor
The output produced, on average, by one unit of labor, such as one worker or one hour of work.
Marginal Product of Labor
The additional output produced as a result of employing one more unit of labor.
- Recognize and evaluate the notion of marginal product and its connection to total and average product.
- Comprehend and recognize the principles of diminishing marginal returns and marginal cost.
Verified Answer
CL
Learning Objectives
- Recognize and evaluate the notion of marginal product and its connection to total and average product.
- Comprehend and recognize the principles of diminishing marginal returns and marginal cost.