Which of the Following Do NOT Serve as Additional External-Governance

question 120

Multiple Choice

Which of the following do NOT serve as additional external-governance mechanisms?

• A) Auditors
• B) Government regulators
• C) Board of directors
• D) Industry analysts

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Definitions:

Negative Marginal Returns

A situation where adding an additional factor of production results in lower output per unit.

Fixed Input

Inputs that remain constant for a period of time and do not change with the level of output.

Total Variable Cost

The sum of expenses that vary directly with the level of production, such as raw materials and direct labor.

Marginal Cost

The expenditure involved in the production of one extra unit of a product.