As a Result of a Fire, a Small Business Owner

question 101

Multiple Choice

As a result of a fire, a small business owner loses some of her computers and other equipment. If the property of diminishing returns applies to all factors of production, she should expect to see

• A)an increase in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor.
• B)an increase in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor.
• C)a decrease in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor.
• D)a decrease in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor.

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Definitions:

Osmotic Diuretics

Substances that increase urine output by attracting and retaining water in the renal tubules.

ADH Inhibitors

Substances that reduce the effect or production of antidiuretic hormone, leading to increased urine output.

Plasma Clearance

The volume of plasma from which a substance is completely removed per unit time, indicating the efficiency of elimination by the kidneys or other body systems.

Inulin

A type of soluble fiber found in various plants, used as a dietary fiber and sometimes for testing kidney function.