Diminishing Marginal Returns Refers to a Situation Where the ________

question 79

Multiple Choice

Diminishing marginal returns refers to a situation where the ________ of an additional worker is less than the ________ of the previous worker.

• A)marginal cost;marginal cost
• B)average cost;average cost
• C)marginal product;marginal product
• D)average product;average product
• E)marginal product;average product

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Definitions:

Fixed Expenses

These are costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Return On Investment

A measure used to evaluate the efficiency of an investment or compare the efficiencies of several different investments.

Residual Income

The amount of income that an entity has after all costs and expenses, including the cost of capital, have been deducted.

Return On Investment

A measure of the profitability of an investment, calculated by dividing the gain from the investment by the cost of the investment.