Diminishing Marginal Returns Implies That

question 199

Multiple Choice

Diminishing marginal returns implies that

• A) marginal costs are decreasing.
• B) marginal costs are increasing.
• C) marginal costs are constant.
• D) marginal costs may be increasing or decreasing.

---

Definitions:

Trend Analysis

The practice of collecting information and attempting to spot a pattern, often used in financial contexts to forecast future movements based on historical data.

Base Year

A fixed reference point or year used for comparison purposes in financial and economic analysis.

Rate of Return

The increase or decrease in value of an investment over a certain time frame, shown as a percentage of the investment's original price.

Total Assets

The total value of everything a company owns, encompassing cash, stocks, real estate, and machinery.