Once We Enter the Region of Diminishing Returns, Total Variable

question 13

Multiple Choice

Once we enter the region of diminishing returns, total variable cost

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

---

Definitions:

Ending Inventory

The total value of all the goods available for sale at the end of an accounting period.

Average Unit Cost

The cost incurred for producing a single unit, calculated by dividing the total cost of production by the number of units produced.

Units

A measure of quantity representing the amount of product or service.

Inventory

The quantity of goods or materials that a business has on hand at any given time.