Which of the Following Is the Best Explanation of Why

question 20

Multiple Choice

Which of the following is the best explanation of why the law of diminishing returns does not apply in the long run?

• A)In the long run,firms can increase the availability of space and equipment to keep up with the increase in variable inputs.
• B)The MPP does not change in the long run.
• C)In the long run,firms have enough time to find the most qualified workers.
• D)All factors of production are fixed in the long run.

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Definitions:

GAAP

Generally Accepted Accounting Principles are a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.

Managerial Accounting Reports

Financial documents specifically prepared for a company's management to assist in strategic decision-making and operational planning.

According to GAAP

As per Generally Accepted Accounting Principles, which are a set of accounting standards and procedures used in the United States.

Financial Accounting Reports

Formal documents that communicate an organization's financial performance and position to external stakeholders, including income statements and balance sheets.