If the Marginal Product of an Input Is Falling,then What

question 141

Multiple Choice

If the marginal product of an input is falling,then what must be true?

• A) Average fixed costs must be constant.
• B) Marginal cost must be rising.
• C) Average total cost must be constant.
• D) Marginal cost must be constant.
• E) Marginal cost must be falling.

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Definitions:

Net Working Capital

An assessment of a corporation's short-term financial health, derived by taking current assets and deducting current liabilities.

Sales Volume

The total number of units sold within a specified time frame, an indicator of a company's performance and market demand for its product or service.

Incremental Cash Flow

The additional cash flow a business expects to generate from a particular investment or decision.