The Law of Diminishing Returns Requires the Assumption That

question 43

Multiple Choice

The law of diminishing returns requires the assumption that

• A) output is fixed.
• B) factor proportions are fixed.
• C) output increments are fixed.
• D) returns are fixed.
• E) at least one input must be fixed.

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Definitions:

Home Security Division

A specialized segment within a company that focuses on products and services related to securing homes from intruders, fire, and other dangers.

Transfer Price

The cost at which products or services are exchanged between divisions within the same organization or among affiliated companies.

Transmission Division

A segment within a company or industry that specializes in the development, production, and maintenance of transmission systems.

Return On Investment (ROI)

A financial metric that calculates the profitability of an investment by dividing the profit gained from an investment by its cost.