When a New Production Technology Is Invented That Results in Production

question 4

Multiple Choice

When a new production technology is invented that results in production of smaller amounts of residuals per unit of output produced, this is called reducing the ________.

• A) damages from production
• B) intensity of pollution
• C) residuals from production
• D) residuals intensity of production

---

Definitions:

Long-Term Debt

Borrowings that are due to be repaid more than one year from the date of the financial statement.

Dividend Payout

A portion of a company's earnings that is distributed to shareholders.

External Financing Needed

The additional funding a firm requires to finance its spending plans, such as investments in fixed assets or increases in working capital, beyond what can be funded by internal sources.

Dividend Payout Ratio

A metric indicating the proportion of a company's net profits paid out to its shareholders as dividends.