FIGURE 7- 1 -Refer to Figure 7- 1. If the Firm Hires the Firm

Multiple Choice

FIGURE 7- 1
-Refer to Figure 7- 1. If the firm hires the 15th unit of labour,

A) the extra output will be zero.
B) average product will fall.
C) marginal product will be unchanged.
D) the firm will reach its capacity.
E) both A and B are correct.