When the Amount of Physical Capital Is Increased,then All Else

question 20

Multiple Choice

When the amount of physical capital is increased,then all else the same,the marginal product of capital will

• A) increase.
• B) decrease.
• C) remain unchanged.
• D) eventually decrease.
• E) eventually increase.

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Definitions:

Record Depreciation Expense

The process of allocating the cost of tangible assets over their useful lives to accurately reflect their consumption and wear and tear.

Financial Statements

The formal records of the financial activities and position of a business, individual, or other entity, presenting the results of operations and the financial status through three primary documents: balance sheet, income statement, and cash flow statement.

Net Income

The residual profits a company holds after deducting expenses, taxes, and costs from the gross income.

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities; also known as shareholders' equity.