If Production Displays Increasing Marginal Returns, Then

question 65

Multiple Choice

If production displays increasing marginal returns, then

• A)total product rises by a constant amount throughout.
• B)each new worker hired adds more to output than previous hires.
• C)the firm must be adding new capital to keep boosting productivity.
• D)total product reaches a maximum sooner than if production displayed decreasing returns.

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Definitions:

Financial Statement

Summarized reports that convey the financial status, performance, and cash flows of a business or individual over a specific period.

Permanent/Temporary

Categories that describe the expected tenure or duration of a job, position, or assignment, denoting whether it is expected to last indefinitely (permanent) or for a limited time period (temporary).

Normal Balance

The typical side (debit or credit) on which an account increases, depending on its type (asset, liability, equity, revenue, or expense).

Financial Statement

Reports that provide detailed information about a company's financial performance and position, including income statements, balance sheets, and statements of cash flows.