The Law of Diminishing Returns Shows That, in the Short

question 49

Multiple Choice

The law of diminishing returns shows that, in the short run, _____.

• A) productivity and costs change at the same rate
• B) productivity changes in proportion to changes in fixed costs
• C) as the marginal product of labour falls, variable costs rise
• D) changes in productivity do not affect changes in costs

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the laws related to commerce and sales.

Deduction

Deduction in a financial context refers to the removal of a certain amount from gross income or expenses, which reduces the taxable income or net profit.

Damages

Compensation sought or awarded in a lawsuit for loss or injury suffered by the plaintiff.

Breaching Party

The entity or individual who fails to fulfill their obligations under a contract, thereby violating the agreement.