Because of the "Law of Diminishing Marginal Returns" to

question 116

Multiple Choice

Because of the "law of diminishing marginal returns" to
A factor, as more labor is employed, its marginal
Product:

• A)rises.
• B)falls.
• C)stays constant.
• D)rises disproportionally.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess the profitability of an investment.

Simple Rate

A basic form of interest calculation representing a percentage of the principal amount over a certain period of time.

Payback Period

The payback period is the duration of time it takes to recover the cost of an investment. This metric is commonly used to assess the feasibility or profitability of a project.

Straight-Line Method

A method of calculating depreciation or amortization that allocates evenly the cost of an asset over its useful life.