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Local Harrisonburg students set up lemonade stands around Harrisonburg in the hopes of raising money for an upcoming field trip. As bright, young entrepreneurs, they

Local Harrisonburg students set up lemonade stands around Harrisonburg in the hopes of raising money for an upcoming field trip. As bright, young entrepreneurs, they are trying to gauge how many stands to operate: one central location with all volunteers present, smaller stands scattered about with one volunteer each, or somewhere in between. One of their main considerations is how productive workers will be depending on how many others each works with. Considerations such as these are important to the "profit-maximizing" students (and many businesses) because:

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there is no discernible relationship between marginal product and marginal cost.

there is a negative relationship between marginal product and marginal cost.

there is a positive relationship between marginal product and marginal cost.

marginal cost and marginal product are equal to one another.

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