The Law of Diminishing Returns States That as Output Rises,eventually

question 156

Multiple Choice

The law of diminishing returns states that as output rises,eventually _____ output will decline.

• A)total
• B)average
• C)fixed
• D)marginal

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Definitions:

Capital Structure

The mix of debt and equity financing used by a firm to fund its operations and growth.

Industry Specific

Tailored or particularly relevant to a certain sector or type of business.

Dividend Growth Model

A valuation method used to predict the price of a company's stock by using projected dividends and discounting them back to present value.

Retained Earnings

The portion of a company's profits that is retained or re-invested in the business instead of being paid out as dividends to shareholders.