According to the Law of Diminishing Returns,an Additional Unit of

question 294

Multiple Choice

According to the law of diminishing returns,an additional unit of

• A)capital produces more output than an additional unit of labor.
• B)labor decreases output.
• C)capital produces the same amount of output as an additional unit of labor.
• D)capital produces more output than the previous unit.
• E)capital produces less output than the previous unit.

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Definitions:

Desired Rate

The desired rate often refers to the target interest rate set by central banks, or it could imply the expected return rate on investments by individuals or businesses.

Capital Investment Analysis

Evaluation processes used by businesses to assess the potential profitability and risk of investment opportunities.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not intended for sale, such as buildings, machinery, and equipment.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows.