All Other Things the Same, a Decrease in Average Operating

question 58

True/False

All other things the same, a decrease in average operating assets will increase return on investment (ROI).

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Definitions:

Marginal Cost

The incremental cost involved in creating an extra unit of a product or service.

Diseconomies of Scale

Occur when a firm's costs per unit increase as its output increases, opposite to economies of scale.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including labor, materials, and overhead expenses.

Car Leasing Company

A business that rents vehicles to customers for a specified period of time, often as an alternative to purchasing.