) Exhibit 13­4 Shows Data Gathered by Memo

question 12

Multiple Choice

) Exhibit 13­4 shows data gathered by Memo Co.as it prepares to purchase personalcomputers for its sales offices.Assume that the personal computers are expected to lastindefinitely, that operating expenses are negligible, and that the price of Memo's output isexpected to remain constant in the future.As the number of personal computers Memo Co.might purchase increases to 120, the marginal rate of return on that kind of capital will

• A)decrease from 24 percent and eventually become negative
• B)rise from 24 percent
• C)decrease from 24 percent but never become negative
• D)remain constant because the price of personal computers is constant
• E)remain constant because the increments being considered are constant

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Definitions:

Oil Refineries

Industrial processing plants where crude oil is transformed and refined into usable petroleum products, such as gasoline, diesel, and jet fuels.

Environmental Pollution

The contamination of the natural environment due to harmful substances or energies, often resulting from human activities and leading to adverse effects on ecosystems and health.

Gulf Coast

A geographic term referring to the coastline along the Gulf of Mexico in the United States, encompassing parts of Texas, Louisiana, Mississippi, Alabama, and Florida.

Fossil Fuel

Natural fuels such as coal, oil, and natural gas, derived from the remains of living organisms that were buried millions of years ago.