"Diminishing Marginal Returns" Refer to a Situation in Which the

question 376

Multiple Choice

"Diminishing marginal returns" refer to a situation in which the

• A) marginal cost of the next worker hired is less than the marginal cost of the previous worker hired.
• B) average cost of the next worker hired is less than the average cost of the previous worker hired.
• C) marginal product of the next worker hired is less than the marginal product of the previous worker hired.
• D) average product of the next worker hired is less than the average product of the previous worker hired.

---

Definitions:

Purchases Returns & Allowances

Purchases Returns and Allowances are reductions in the cost of purchases due to returning goods or granting allowances for defective or unsatisfactory goods.

Sales Discounts

Sales discounts are reductions in the selling price offered to customers, often as an incentive for early payment or bulk purchases.

Inventory Balance

The value of goods available for sale at the end of an accounting period.

Plant, Property

Long-term tangible assets owned by a business, used in operating activities, and not expected to be consumed or converted into cash short term.