Question
17) Consider the following statements when answering this question (I do not see the what is the difference between following two sentences, Please provide an
17) Consider the following statements when answering this question
(I do not see the what is the difference between following two sentences, Please provide an appropriate graph with detail explanation)
I.If the marginal product of labor falls whenever more labor is used, and labor is the only factor of production used by the firm, then at every output level the firm's short-run average variable cost exceeds marginal cost.
II.If labor obeys the law of diminishing returns and is the only factor of production used by the firm, then at every output level short-run average variable cost exceed marginal costs.
A) I is true, and II is false.
B) I is false, and II is true.
C) I and II are both true.
D) I and II are both false.
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