When Diminishing Marginal Returns Set In, Marginal Product Is

question 212

Multiple Choice

When diminishing marginal returns set in, marginal product is

• A)positive and increasing
• B)positive and decreasing
• C)negative and increasing
• D)negative and decreasing
• E)zero

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Definitions:

After-Tax

The amount of income or profit remaining after all taxes have been deducted.

Capital Budgeting

The process a business undertakes to evaluate potential major projects or investments.

Cash Flows

The comprehensive total of finances being transferred within and outside a business, affecting its ability to quickly convert assets to cash.

Erosion

The gradual wearing away or removal of land or material by natural forces such as wind, water, or ice.