Once We Enter the Region of Diminishing Returns

question 38

Multiple Choice

Once we enter the region of diminishing returns,

• A)Variable cost increases at a decreasing rate
• B)Variable cost increases at an increasing rate
• C)Variable cost decreases at a decreasing rate
• D)Variable cost decreases at an increasing rate

---

Definitions:

Long-Term Stability

A state of consistent operation, performance, or condition over an extended period, suggesting reliability and sustainability.

Short-Term Returns

Profits or gains expected or realized over a brief period, usually less than a year.

Tax-holiday

A temporary reduction or elimination of a tax by the government to encourage investment or stimulate consumer spending.

Transnational Corporations

Large companies that operate and distribute products or services in multiple countries beyond their home base, often influencing global trade and economy.