Which of the Following Statements by a Restaurant Owner Refers

question 48

Multiple Choice

Which of the following statements by a restaurant owner refers to the law of diminishing returns?

• A)"The higher the quality of the ingredients we use,the higher the cost of producing each meal."
• B)"If we double the size of our premises and double everything else - kitchen staff,serving staff,equipment - we can increase the number of meals we serve,but not to double the current levels."
• C)"We can increase the number of meals we serve by just adding more kitchen staff,but each additional worker adds less meals than the previous worker because traffic in the kitchen will get worse."
• D)"We can serve the same number of meals with fewer kitchen staff,but we would have to buy more labour-saving kitchen equipment."
• E)"We can serve the same number of meals with less kitchen equipment,but we would have to hire more kitchen staff."

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Definitions:

Extra Dividends

Dividends paid in addition to the expected regular dividends during a fiscal year, often signaling strong company performance.

Common Stockholders

Investors who own common shares in a company, having rights to vote at shareholders' meetings and to receive dividends.

Compensatory Stock Option Plan

A plan that provides employees the option to purchase company stock at a discounted price as part of their compensation.