Examlex
Hugo includes the following sentence in his memo: "The increase in profits is greater than any I have seen during my career." What is the flaw in this sentence?
Marginal Cost
The supplementary expenditure required to produce an extra unit of a product or service.
Diminishing Returns
An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.
Decreasing Returns
A condition in economics where adding more input (like labor or capital) leads to progressively smaller increases in output.
Long-Run
A term referring to a period of time in economics during which all factors of production and costs are variable.
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