Distinguish Between the Following Three Phases of Production: Increasing Marginal

question 3

Essay

Distinguish between the following three phases of production: increasing marginal productivity, diminishing marginal productivity and diminishing absolute productivity.

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Definitions:

Major Customer

A customer that represents a significant portion of a company's revenue, which if lost, could materially affect the financial health of the business.

Operating Segments

Components of a business that engage in business activities earning revenues and incurring expenses, whose operating results are regularly reviewed by the company's decision maker.

Revenues

The total amount of income generated by the sale of goods or services related to a company's primary operations before any costs or expenses are deducted.

Operating Segments

Operating segments refer to components of an enterprise for which separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.