Refer to Figure 11-2. The average product of labor declines after L2 because
A) the marginal product of labor is below the average product of labor.
B) the marginal product of labor is negative.
C) the marginal product of labor is falling.
D) the marginal product of labor is positive.
Question 2
Producing where marginal revenue equals marginal cost is equivalent to producing where
A) total revenue is equal to total cost. B) total profit is maximized.
C) average fixed cost is minimized. D) average total cost equals average revenue.
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