As Soon as Diminishing Returns Set In,a Firm's

question 133

Multiple Choice

As soon as diminishing returns set in,a firm's

• A)marginal product increases.
• B)average fixed cost decreases.
• C)marginal cost decreases.
• D)marginal cost increases.
• E)total cost decreases.

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Definitions:

Intervene

To come between disputing parties, events, or processes to alter a result or prevent certain actions.

Angel Investor

A wealthy individual who provides financial backing for small startups or entrepreneurs, often in exchange for ownership equity in the company.

Return

Refers to the income generated from an investment, including dividends, interest, or capital gains, expressed usually as a percentage.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.