If the interest rate is 4 percent, the present value of 10,000 to ...

[saraeharris]

If the interest rate is 4 percent, the present value of 10,000 to be received one year from today is about
 
  A) 9,246.
  B) 9,615.
  C) 10,816.
  D) 10,400.

Question 2

If the marginal product of labor curve slopes downward, then the average product of labor curve necessarily must slope downward. Explain whether the previous statement is correct or incorrect?
 
  What will be an ideal response?

[dmurph1496]

Answer to Question 1

A

Answer to Question 2

The statement is incorrect. The relationship between the marginal product and average product of labor is that when the marginal product of labor exceeds the average product of labor, the average product of labor curve slopes upward and when the marginal product of labor is less than the average product of labor, the average product of labor curve slopes downward. So, even if the marginal product of labor curve slopes downward, as long as it is above the average product of labor curve, the average product of labor curve slopes upward.