If Capital Is a Variable Input in Production, the Law

question 203

Multiple Choice

If capital is a variable input in production, the law of diminishing marginal returns implies that in the short run

• A) capitalʹs marginal product is constant.
• B) capitalʹs marginal product decreases after a certain point.
• C) total product is negative.
• D) total product is negative after a certain point has been reached.

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Definitions:

Firm Commitment Underwriting

A type of underwriting in which an underwriter commits to buying all the securities offered by the issuer and assumes full financial responsibility for any unsold securities.