Increasing Returns Occur When

question 98

Multiple Choice

Increasing returns occur when

• A)marginal cost is increasing.
• B)marginal cost is decreasing.
• C)average total cost is falling.
• D)average variable cost is falling.
• E)marginal product is decreasing.

---

Definitions:

Cash Dividend

A cash dividend is a payment made by a company to its shareholders, typically from its profits, in the form of cash or electronic funds transfer.

Financing Activities

Transactions and events involving changes in equity and debt in the financial structure of a company, such as issuing shares or taking loans.

Comparative Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders’ equity of a company at two or more different points in time, used to analyze trends in financial position.

Cash Dividends

Cash dividends are payments made by a corporation to its shareholder members. It is the share of profits distributed in the form of cash.