According to the Law of Diminishing Returns, an Additional Unit

question 87

Multiple Choice

According to the law of diminishing returns, an additional unit of

• A)labour decreases output.
• B)labour produces more output than the previous unit.
• C)capital produces more output than an additional unit of labour.
• D)labour produces less output than the previous unit.

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Definitions:

Total Debts

The sum of all financial obligations a company owes to external parties, including bonds, loans, and other forms of debt.

Gross Asset

Total value of all assets owned by an entity before any deductions for liabilities or depreciation.

Estate Tax

A tax levied on the net value of the estate of a deceased person before distribution to the heirs.

Valuation

The process of determining the current worth of an asset or a company.