The Law of Increasing Additional Cost Is Due to

question 126

Multiple Choice

The law of increasing additional cost is due to

• A)scarcity.
• B)inefficient use of technology.
• C)the fact that resources are not perfectly adaptable for alternative uses.
• D)the fact that there are always alternatives and it is costly to figure out which alternative is best.

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Definitions:

Net Operating Income

The income a company makes from its regular business activities, not including costs related to interest and taxes.

Net Operating Income

A measure of a company's profitability that calculates how much revenue exceeds operating expenses, not including taxes and interest expenses.

Average Operating Assets

A financial metric calculated by averaging the beginning and ending values of assets employed in generating operating income over a certain period.

Minimum Required Rate

The lowest rate of return considered acceptable by investors for investing in a financial instrument, based on risk and alternative opportunities.