Which of the Following Is an Implication of the Law

question 40

Multiple Choice

Which of the following is an implication of the law of diminishing returns?

• A) Total output will decline as more workers are hired.
• B) In the long run, average total cost will eventually decline as output is expanded.
• C) In the short run, expansion of output will eventually lead to increases in marginal cost and average total cost.
• D) A doubling of all inputs will lead to more than a doubling of output.

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Definitions:

Discount Rate

This refers to the interest rate employed in DCF calculations to figure out the present value of upcoming cash flows.

Net Present Value

A financial measure that determines the net present value by subtracting the total outgoing cash flows from the incoming cash flows over a certain time period.

Telecommunications Equipment

Hardware used in the transmission, reception, and processing of data and communication signals.

Investment

The allocation of resources, such as time, money, or effort, in hope of generating a future return or profit.