The Below Figure Shows the Various Combinations of the Goods

question 71

Multiple Choice

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-Which of these is true of the law of diminishing marginal returns?

• A)It is a long run phenomena where all inputs are variable.
• B)It applies mostly to the short run because some inputs remain fixed.
• C)It is a long run phenomena experienced under monopoly.
• D)It applies to fixed inputs in the long run.
• E)It applies to fixed inputs in the short run.

---

Definitions:

Questionable Receivables

Accounts receivable that might not be collected due to issues like customer disputes or financial instability.

Budgeted Comparisons

The process of comparing budgeted financial forecasts with actual financial performance to identify variances and make adjustments.

Historical Comparisons

The analysis of past data to identify trends, patterns, or changes over time, often used in financial analysis.

Competition Comparisons

An analysis technique used by companies to evaluate their position relative to competitors in the market, focusing on strengths, weaknesses, opportunities, and threats.