As More of an Activity Is Undertaken,it Is Reasonable to Assume

question 14

Multiple Choice

As more of an activity is undertaken,it is reasonable to assume that

• A) the total benefits will decline.
• B) the marginal benefits will decline.
• C) the fixed costs will decline.
• D) the marginal benefits will increase.

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Definitions:

Evaluating

The process of assessing or appraising the performance, value, or condition of an entity or component.

Capital Investment Analysis

The process of assessing the viability and potential return on investments in long-term assets.

Fixed Assets

Physical resources that are owned and used by a business and are permanent or have a long life; long-term or relatively permanent tangible assets such as equipment, machinery, buildings, and land that are used in normal business operations.

Investments

Assets purchased for the purpose of generating income or profit, including stocks, bonds, and real estate.