The Law of Diminishing Returns Implies That

question 292

Multiple Choice

The law of diminishing returns implies that

• A)the more hours you spend studying, the less you will know.
• B)your understanding will be increased by decreasing your marginal study time.
• C)eventually, the more hours you spend studying per day, the less you will learn with each added hour.
• D)the more hours you spend studying per day, the more you will learn with each added hour.

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Definitions:

Total Fixed Assets

The total value of all long-term, tangible assets held by a company for use in production but not for resale.

Long-Term Liabilities

Obligations due to be paid or settled beyond one year, including loans, bonds, lease obligations, and pension obligations.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including debts and other financial commitments.

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; also known as stockholders' equity.