If Equal Increments of One Variable Input Are Added While

question 1

Multiple Choice

If equal increments of one variable input are added while keeping the amounts of all other inputs fixed, and decreasing additions to total product begin, then:

• A) diminishing marginal returns have begun.
• B) marginal product has reached its maximum.
• C) total product is rising.
• D) average product is rising.
• E) all of the above

---

Definitions:

Cost of Goods Sold

The costs directly associated with producing a company's goods for sale, including expenses for labor and materials.

Inventory Account

Inventory Account is an asset account on the balance sheet that reports the value of a company's inventory - raw materials, work-in-process, and finished goods.

Factory Overhead

Manufacturing costs that are not raw material or direct labor costs.

Raw Materials

The basic materials from which products are manufactured or made.