What Is True of Marginal Cost When Marginal Returns Are

question 27

Multiple Choice

What is true of marginal cost when marginal returns are decreasing?

• A)It is negative and increasing.
• B)It is negative and decreasing.
• C)It is positive and increasing.
• D)It is positive and decreasing.
• E)It is positive and has a constant slope.

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Definitions:

Gainsharing

A program where employees receive financial rewards based on the performance improvement or cost-savings achievements of their work group.

Productivity

The measurement of efficiency of production, especially in terms of output per unit of input.

Cost Savings

The reduction in expenses achieved through efficiency improvements, negotiation, or eliminating wasteful practices.

Productivity Measurement

The process of determining the efficiency of production of goods or services, typically by comparing input resources to output.