The Law of Diminishing Returns Makes It Clear That as More

question 343

Multiple Choice

The law of diminishing returns makes it clear that as more a variable input is employed, in the ________ the marginal product of the variable input eventually will ________.

• A) short run; rise
• B) long run; rise
• C) short run; fall
• D) long run; fall

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Definitions:

Required Rate Of Return

The minimum percentage return an investor expects to achieve on an investment to consider it worthwhile.

Average Operating Assets

The average value of the assets used in the production or operation of a company over a certain period.

Net Operating Income

The total earnings from a company's operations, after subtracting operating expenses but before interest and taxes.

Performance Evaluation

The process of assessing and reviewing an employee's or organization's work performance and outcomes against established standards or objectives.