Diminishing Marginal Returns Occur Because

question 40

Multiple Choice

Diminishing marginal returns occur because

• A) average and marginal relationships behave very differently with respect to each other.
• B) the efficiency of variable resources depends on the quantity of the fixed resources.
• C) producers are not careful enough in the manufacturing process.
• D) workers are lazy and inefficient.
• E) workers in some industries lack an adequate formal education.

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Definitions:

Purchase

The acquisition of goods or services in exchange for money, contributing to a company's expenses.

Consolidated Retained Earnings

The accumulated net income of a corporation and its subsidiaries after dividends have been paid out to shareholders.

Gain or Loss

The financial result that occurs when the selling price of an asset differs from its purchase price, either as a profit or a deficit.

Share Issue

A process by which a company distributes new shares to shareholders, either as part of a public offering or a private placement.