The Free- Disposal Assumption Implies That

question 20

Multiple Choice

The free- disposal assumption implies that:

• A)the MP of an input cannot be negative.
• B)garbage disposal is costless.
• C)excess use on an input reduces output unless more of others are used.
• D)total product always increases as quantity of a variable input.

---

Definitions:

Accounts Receivables

Sums due to a company from its clients for products or services provided but not yet compensated for.

Factor

A financial intermediary that purchases receivables from businesses, providing them with immediate cash flow.

Sale of Receivables

The process of selling outstanding invoices to a third party in order to receive immediate payment.

Allowance for Doubtful Accounts

An accounting estimate for the portion of accounts receivable that may not be collectible.