Which of the following statements regarding comparisons of productivity across two firms is true?
A) The firm with the higher APL is the more productive firm.
B) The firm with the higher MPL is the more productive firm.
C) The firm with the lower MPL is the more productive firm.
D) The average product of labor can vary with the choice of inputs and the level of outputs, so the firm with the higher APL may not be the most productive.
Correct Answer:
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