The Idea That the More Any Given Resource Is Applied

question 85

Multiple Choice

The idea that the more any given resource is applied to production,the lower the marginal gain in output,until a point is reached where the additional inputs produce no additional output,is referred to as:

• A)the point of no return.
• B)the law of diminishing returns.
• C)supply and demand.
• D)network inelasticity.
• E)virtual economics.

---

Definitions:

Operating Expenses

Costs incurred in the regular functioning of a business, excluding direct production costs; these may include rent, utilities, and administrative salaries.

Sales Revenues

Income earned by a company from its sales of goods or services, before any deductions.

Annual Depreciation

The annual expense taken for a fixed asset, representing a fraction of its cost spread over its lifespan.

Useful Life

The estimated duration of time that an asset is expected to be usable for its intended purpose, affecting depreciation calculations.