If Increasing Quantities of a Variable Factor Are Applied to a Given

question 79

Multiple Choice

If increasing quantities of a variable factor are applied to a given quantity of fixed factors, then the law of diminishing returns tells us that

• A) total product will eventually begin to fall.
• B) the marginal product will eventually decrease with constant average product.
• C) the marginal product and the average product of the variable factor will eventually decrease.
• D) the average product will eventually decrease, but only if total product is held constant.
• E) the average product will eventually decrease with constant marginal product.

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Definitions:

Debit Portion

The section of a financial transaction that records the increase in assets or decrease in liabilities on the left side of an account.

Credit Portion

Refers to the part of a financial transaction that is recorded as a credit in the accounting records, increasing liabilities or decreasing assets.

Revenue Recognition Principle

An accounting principle that dictates the conditions under which revenue is recognized and determines how revenue is accounted for.

Revenue Account

An account that tracks the income generated from a company's primary operations.