Which of the Following Statements Is True

question 16

Multiple Choice

Which of the following statements is true?

• A)If the marginal product of labor diminishes, the average fixed cost rises.
• B)If the marginal product of labor diminishes, the average variable cost is constant.
• C)If the marginal product of labor diminishes, the marginal cost falls.
• D)If the marginal product of labor diminishes, the average total cost rises.
• E)If the marginal product of labor diminishes, the total cost rises at a diminishing rate.

---

Definitions:

Investment Portfolio

A collection of assets including stocks, bonds, mutual funds, and other investments held by an individual or an institution.

Recognize

In an accounting context, to recognize is to formally record an item within the financial statements of an entity, acknowledging its existence or occurrence.

Short-term Capital Loss

A loss realized from the sale or exchange of a capital asset held for one year or less, which can be used to offset capital gains for tax purposes.

Long-term Capital Gain

A profit from the sale of an asset held for more than a year, typically taxed at a lower rate than regular income.