If the Marginal Product of an Input Is Falling, Then

question 338

Multiple Choice

If the marginal product of an input is falling, then

• A) average fixed cost is constant.
• B) marginal cost is falling.
• C) average total cost is constant.
• D) marginal cost is rising.

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Definitions:

Indirect Method

An accounting technique used to allocate costs to specific cost objects indirectly, typically by using cost drivers or allocation bases.

Investing Activities

Financial actions that involve the purchase and sale of long-term assets and investments not included in cash equivalents.

Net Cash

The amount of cash available after accounting for cash inflows and outflows, used to measure liquidity and cash position of a business.

Marketable Securities

Financial instruments and assets that can be easily converted into cash without significant loss of value.