As a Result of a Labeling Mistake at the Chemical

question 526

Multiple Choice

As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. As a result, she loses half of her productive farmland. If the property of diminishing returns applies to all factors of production, she should expect to see the marginal productivity of her remaining land

• A)increase.
• B)remain unchanged.
• C)decrease but remain positive.
• D)decrease and become negative.

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Definitions:

Rate of Return

The profit or deficit on an investment across a designated timeframe, demonstrated as a proportion of the investment's original expense.

Rate of Return

The percentage of increase or decrease in the value of an investment over a specified period of time.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.

Cumulative Voting

A voting system that allows shareholders to concentrate their vote allocation among one or more candidates, enhancing minority shareholders' ability to elect a director.