The More Any Given Resource Is Applied to Production,the Lower

question 2

Multiple Choice

The more any given resource is applied to production,the lower the marginal gain in output,until a point is reached where the additional inputs produce no additional output.This is referred to as

• A)the point of no return.
• B)the law of diminishing returns.
• C)supply and demand.
• D)network inelasticity.
• E)the invisible hand.

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Definitions:

Lower-of-Cost-or-Market

An accounting principle that mandates inventory be recorded at the lower between its historical cost and current market value.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Inventory Quantity

The amount of merchandise, raw materials, work-in-progress, and finished goods that a company holds at any given point in time.

Days' Sales

A financial metric that calculates the average time it takes for a company to convert its inventory into sales.