Diminishing Returns to an Input Occur

question 206

Multiple Choice

Diminishing returns to an input occur:

• A)when all inputs are fixed.
• B)when some inputs are fixed and some are variable.
• C)when all inputs are variable.
• D)only when there are no fixed inputs.

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Definitions:

Retained Earnings

The amount of net earnings left in the company after dividends are paid out to shareholders, used for investment or to pay off debt.