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One reason that firms will experience decreasing returns to scale is:
Liability Account
A Liability Account represents a company's financial obligations or debts that arise during the course of business operations.
Fair Market Value
The estimated price at which an asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell.
Investments
Assets purchased with the aim of generating income or appreciating in value over time, such as stocks, bonds, or real estate.
Disclosures
These are notes in financial statements that provide additional insight into the presented figures, accounting policies, and other relevant information.
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