Diminishing Returns to Labor Occur for Two Primary Reasons: 1)as

question 127

True/False

Diminishing returns to labor occur for two primary reasons: 1)as we keep adding new workers,it becomes increasingly difficult to obtain productivity gains through additional specialization;and 2)each additional worker we add has less land and capital to work with.

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Definitions:

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital wherein each category of capital is proportionately weighted.

Risk Similarity

The degree to which different investments share similar risk characteristics.

Current Operations

The day-to-day activities involved in running a business, such as sales, maintenance, and administration, which directly relate to its main activities.

Flotation Costs

The expenses incurred by a company in issuing new securities, including underwriting fees, legal fees, and registration fees.