The Law of Diminishing Marginal Productivity Does Not Apply in the Long

question 18

Multiple Choice

The law of diminishing marginal productivity does not apply in the long run because:

• A) some inputs are fixed in the long run.
• B) some inputs are variable in the long run.
• C) no inputs are fixed in the long run.
• D) all inputs are fixed in the long run.

Appreciate the concept of LMX differentiation and its impact on group dynamics and performance.

Identify and classify costs into variable and fixed categories.

Understand the concept of marginal cost and its calculation.

Comprehend the law of diminishing marginal returns and its impact on production.

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Definitions:

Statement of Financial Position

A financial statement that outlines an organization's assets, liabilities, and equity at a specific point in time; commonly known as a balance sheet.

Special Rights and Privileges

Specific advantages or entitlements granted to certain shareholders or members of a company, such as preferred dividends or voting rights.

Intangible Assets

Intangible assets are non-physical assets owned by a business, such as patents, trademarks, and goodwill, that have value in commercial operations.

Liquid Resource

Assets that can be quickly and easily converted into cash without significant loss in value.