All Else Equal,if There Are Diminishing Returns,then What Happens to Productivity

question 99

Multiple Choice

All else equal,if there are diminishing returns,then what happens to productivity if both capital and labor increase?

• A)Productivity will definitely fall.
• B)Productivity will definitely be unchanged.
• C)Productivity will definitely rise.
• D)None of the above are necessarily correct.

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Definitions:

Treasury Stock

This refers to shares of stock that were issued and later reacquired by the issuing corporation. It is often held to utilize in future acquisitions or to reissue to employees as part of compensation packages.

Par Common Stock

The nominal or face value assigned to a share of common stock by the company's charter.

Prior Period Adjustment

An adjustment made to the financial statements to correct an error found in a period that has already been reported.

Depreciation Expense

Depreciation expense represents the systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or other reductions in value.