As a Result of Severe Flooding,a Farmer Loses One-Half of His

question 102

Multiple Choice

As a result of severe flooding,a farmer loses one-half of his productive farmland.If the property of diminishing returns applies to all factors of production,what should he expect

• A)an increase in the marginal productivity of his remaining land, and an increase in the marginal productivity of his labour
• B)an increase in the marginal productivity of his remaining land, and a decrease in the marginal productivity of his labour
• C)a decrease in the marginal productivity of his remaining land, and an increase in the marginal productivity of his labour
• D)a decrease in the marginal productivity of his remaining land, and a decrease in the marginal productivity of his labour

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Definitions:

Allocated

Refers to the distribution or assignment of costs or resources to different accounts, projects, or periods.

Cost of Goods Sold

The total direct costs attributable to the production of the goods sold by a company, including materials and labor.

Indirect Expenses

Costs not directly tied to a product or service, like utilities and rent.

Departments

Departments refer to distinct areas or divisions within a business or organization, each handling specific tasks or responsibilities.