As Output Expands

question 69

Multiple Choice

As output expands,

• A)increasing returns will follow diminishing returns.
• B)diminishing returns will follow increasing returns.
• C)increasing returns and diminishing returns will occur simultaneously.

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Definitions:

Corporations

Businesses that are legally recognized as separate entities from their owners, having their rights and liabilities.

Single Taxation

A tax system where income is taxed only once, typically referring to how corporate profits are taxed at either the corporate or shareholder level but not both.

Mutual Agency

A principle in partnerships where each partner has the power to bind the entire partnership to a contract or agreement.

Limited Liability

A principle where a company's shareholders are legally responsible for its debts only to the extent of the amount of capital they invested.