Because of Diminishing Returns, a Factor in Abundant Supply Has

question 118

Multiple Choice

Because of diminishing returns, a factor in abundant supply has a

• A)high marginal product and a high rental price.
• B)high marginal product and a low rental price.
• C)low marginal product and a high rental price.
• D)low marginal product and a low rental price.

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Definitions:

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets.

Balance Sheet

A report showing a firm's holdings, debts, and owner's equity on a certain date.

Corporation

A legal entity separate from its owners, with rights and responsibilities, capable of entering contracts, suing, and being sued.

Business Segment

A division within a company that generates revenues and incurs expenses related to different products, services, or geographic areas.