Which of the Following Is an Implication of the Law

question 40

Multiple Choice

Which of the following is an implication of the law of diminishing returns?

• A) Total output will decline as more workers are hired.
• B) In the long run, average total cost will eventually decline as output is expanded.
• C) In the short run, expansion of output will eventually lead to increases in marginal cost and average total cost.
• D) A doubling of all inputs will lead to more than a doubling of output.

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Definitions:

Journal Entry

A record in accounting that notes the debit and credit transactions affecting a company's financial statements.

Stockholders

Individuals or entities that own shares in a corporation, giving them certain rights and responsibilities.

Fees Earned

Income earned by a company from its service offerings over a defined time frame.

Journal Entry

A record in accounting that notes the debit and credit movements across accounts for a particular financial transaction.