Which of the Following Are Correct? According to the Law

question 130

Multiple Choice

Which of the following are correct? According to the law of diminishing returns, (1) marginal product eventually rises.
(2) marginal product eventually falls.
(3) marginal cost eventually rises.
(4) marginal cost eventually falls.

• A)(1)and (3)
• B)(1)and (4)
• C)(2)and (3)
• D)(2)and (4)
• E)(4)

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Definitions:

Comparative Balance Sheets

Comparative balance sheets display the financial position of a business at different points in time, facilitating the analysis of trends over time.

Year 1

Typically refers to the first year of operation for a business or the initial year in a time series analysis in accounting or finance contexts.

Investing Activities

This refers to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted into cash in the upcoming fiscal year.